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[HSBC] HSBC Fixed rates: 1.84% 2-yr & 5-yr, 1.64% 5-yr Insured (with cashback ends Oct 30!)

  • Last Updated:
  • Oct 20th, 2020 1:27 am
Deal Addict
Feb 20, 2002
1155 posts
510 upvotes
Noviverde wrote: So just to confirm, other than the HELOC discharge fee, TD did not charge you anything or add any amount to the final statement? So effectively your cost was the $672 plus the HELOC discharge fee, right?
Instead of asking us, you should really be asking TD. This is a simple question they can answer and really the only answer that matters. Everyone’s scenario is slightly different. For me, discharge fee was $260 and there was a ~$77 government e-registration fee. These fees were charged by TD for both the mortgage and HELOC (so x2). The legal fee is on the HSBC side, along with $300 appraisal. HSBC cash back will cover some or all of these fees. I just renewed this week thru HSBC at 1.81% 5 yr fixed.
Newbie
Jul 2, 2020
43 posts
14 upvotes
vader_slri wrote: Instead of asking us, you should really be asking TD. This is a simple question they can answer and really the only answer that matters. Everyone’s scenario is slightly different. For me, discharge fee was $260 and there was a ~$77 government e-registration fee. These fees were charged by TD for both the mortgage and HELOC (so x2). The legal fee is on the HSBC side, along with $300 appraisal. HSBC cash back will cover some or all of these fees. I just renewed this week thru HSBC at 1.81% 5 yr fixed.
I will ignore your first line while noting that I do not have a mortgage with TD hence why I asked!

In any case, thank you as you answered my question as several people implied that the discharge fees were included in the legal fees, when they are clearly not!
Newbie
Jul 21, 2017
87 posts
21 upvotes
Experts - I am looking for my mortgage renewal and wondering whether to go with 'variable' or 'fixed' rate as the difference between two is only around 0.1 % . at the moment ?

If I look at the this difference ,answer is clear that I should go with 'fixed' rather than 'variable' however with 2nd wave of covid in the pipeline , wondering whether interest rate may fall further (policy rate and prime rate) and I may get even lower rate than today's rate?

Whats your take on this ?
Member
Oct 12, 2005
337 posts
287 upvotes
Terrace
aaleemm wrote: Experts - I am looking for my mortgage renewal and wondering whether to go with 'variable' or 'fixed' rate as the difference between two is only around 0.1 % . at the moment ?

If I look at the this difference ,answer is clear that I should go with 'fixed' rather than 'variable' however with 2nd wave of covid in the pipeline , wondering whether interest rate may fall further (policy rate and prime rate) and I may get even lower rate than today's rate?

Whats your take on this ?
The biggest reason to take variable over fixed is penalties. If you refinance or sell without porting a fixed mortgage, you may have to the higher of three months interest or an interest rate differential (IRD) penalty based off your discount from the posted mortgage rate. This can sometimes be in the tens of thousands of dollars (Five-year posted rate is currently 4.74%).

With a variable mortgage with HSBC, the penalty is only 3 months' interest, and unique to HBSC, the mortgage becomes totally open in the last 2 years (no restrictions or penalties at all for prepayment).
Member
Nov 18, 2008
437 posts
264 upvotes
Toronto
aaleemm wrote: Experts - I am looking for my mortgage renewal and wondering whether to go with 'variable' or 'fixed' rate as the difference between two is only around 0.1 % . at the moment ?

If I look at the this difference ,answer is clear that I should go with 'fixed' rather than 'variable' however with 2nd wave of covid in the pipeline , wondering whether interest rate may fall further (policy rate and prime rate) and I may get even lower rate than today's rate?

Whats your take on this ?
I personally wouldn't get variable hoping rates will go lower. Can they go lower due to a worsening economy? Maybe... But it's far more likely to me it will end up higher at the end of 3 yrs given we are at our historically lowest rate in history.

As Ejohan mentioned, your main benefit is reduced penalties for variable.

My HSBC contact that can get preferred rates had 1.75 for 5 yr variable. That's only 0.06 lower than the 1.81 5 yr fixed rate. Not enough of a benefit in my mind but i also don't need to sell a take on a penalty anytime soon.
Newbie
Jul 21, 2017
87 posts
21 upvotes
Experts what is your view on the below when deciding Fixed vs Variable :
https://www.cnbc.com/2020/09/16/fed-mee ... rates.html

Key takes :
"As the central bank concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0%-0.25%"

"Projections from individual members also indicated that rates could stay anchored near zero through 2023. All but four members indicated they see zero rates through then. This was the first time the committee forecast its outlook for 2023.

My view :
Probably the best scenario would be (assuming FED does what it says):
2020 = variable
2021 = variable
2022 = variable
2023 = Convert variable into 3 or 5 year fixed
2024 = Fixed
2025 = Fixed
2026 = Fixed
2027 = Fixed

xPosted
Member
Dec 3, 2006
444 posts
246 upvotes
Craven
I'd like a PM... we just bought a house, 330K and are looking for a 5 year fixed. 20% down. Possession is Oct. 1 so time is of the essence.
Sr. Member
Nov 10, 2003
567 posts
114 upvotes
Richmond
Imago wrote: I'd like a PM... we just bought a house, 330K and are looking for a 5 year fixed. 20% down. Possession is Oct. 1 so time is of the essence.
Congratulations on the new house.

One advice, don't wait too long as you never know what will happened. When I bought my house, the bank messed up my application and I almost couldn't complete the deal. Luckily, I was pre-approved for an open variables from another bank and was able to complete the deal with that mortgage.
Member
Mar 28, 2010
234 posts
433 upvotes
vancouver
If inflation ticks up in the next year, don't expect fixed rates to stay this low.
aaleemm wrote: Experts what is your view on the below when deciding Fixed vs Variable :
https://www.cnbc.com/2020/09/16/fed-mee ... rates.html

Key takes :
"As the central bank concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0%-0.25%"

"Projections from individual members also indicated that rates could stay anchored near zero through 2023. All but four members indicated they see zero rates through then. This was the first time the committee forecast its outlook for 2023.

My view :
Probably the best scenario would be (assuming FED does what it says):
2020 = variable
2021 = variable
2022 = variable
2023 = Convert variable into 3 or 5 year fixed
2024 = Fixed
2025 = Fixed
2026 = Fixed
2027 = Fixed

xPosted
Newbie
Sep 21, 2020
1 posts
I am looking for a mortgage. Please PM me contact details. Thanks!
Newbie
Feb 23, 2012
2 posts
Windsor
Looking for new mortgage ... any help for contact info is appreciated!

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