HSBC Uninsured Mortgage Rate 2.59% 5yrs Fixed plus Cashback/Rewards

Thought this warranted it's own new thread as the old HSBC threads are still titled 2.79% and 2.74% and the different rates and cashback options are not clearly set out.

Today, HSBC dropped their uninsured non high ratio 5yr fixed rate to 2.59%. If your new purchase is for a property with a purchase price of greater than $1 Million, this is the applicable rate for you. For comparisons, you can check ratehub or the RFD mortgage broker megathread at RFD Mortgage Rates Megathread.

Their high ratio 5yr fixed rate also dropped to 2.49%. You can probably find a better high ratio rate through the mortgage brokers in the aforementioned megathread.

Before people go on about HSBC's poor service, I'll just quote what I mentioned in the other thread:

I think the HSBC customer service experience is very dependent on which Relationship Manager (RM) you get. For example, my experience with the staff at [a downtown] location was abysmal. However, my RM (at a different branch) has been quite helpful and has gone out of her way to accommodate me and was able to get me a larger loan amount than any of the big 5 banks.

If you are thinking of getting a mortgage with HSBC in Toronto, feel free to PM me for my RM's contact info.

The cashback and other incentives depend on the size of your mortgage, whether you're opening a new chequing account with them, whether you'll change your payroll to HSBC and whether you'll sign up for a HSBC credit card.

The mortgage cashback info (either $2k or $1k) can be found here: https://www.hsbc.ca/mortgages/mortgage-offers/

The mortgage cashback fine print states:

When you purchase a new property and are taking a new personal mortgage loan (“Mortgage”) with HSBC Bank Canada (“HSBC”) or move your existing Mortgage from another financial institution to HSBC, in the amount of CA$200,000 or more with a five year fixed or variable closed term or greater and make mortgage payments from your HSBC chequing or savings account, you may receive a cash bonus of $1,000 for mortgages between $200,000 up to $499,999.99, and $2,000 for mortgages greater than or equal to $500,000 (the “Cash Back”) (the “HSBC Mortgage Cash Back Offer”).

Also helpful to note that HSBC allows you to choose whether you want a conventional standard charge [HSBC Traditional (Residential) Mortgage] or a collateral charge [HSBC Equity Power Mortgage]. Some lenders nowadays only register collateral charges (i.e. TD Bank). You can find the differences between conventional standard charges vs collateral charges through a quick google search or by talking to your bank rep or mortgage broker.

The chequing account, payroll and credit card incentives (up to $700 in rewards) can be found here: https://www.hsbc.ca/chequing-accounts/o ... QTT0000830

You can also earn up to $1,000 in referral bonuses, although the average borrower will probably get $350 or $100 through the HSBC Premier or HSBC Advance chequing accounts, respectively. Details found here: https://www.hsbc.ca/share-the-experience

So with a little bit of work and a good RM, you can have a competitive mortgage product offering some of the best rates and very high cashback/reward amounts.

So, hypothetically, if you sign up for a $500k mortgage from HSBC, with a new HSBC Premier Chequing Account, switch your payroll to said chequing account, sign up for a HSBC Premier Credit Card, get the referral bonus and satisfy the conditions in the fine print, you could get the following cashback/rewards:

1) $2,000 cashback for the $500k mortgage
2) $500 for opening the new Premier Chequing Account
3) $100 for switching payroll
4) $100 in bonus points for the credit card
5) $350 referral bonus as a HSBC Premier referral

That totals for $3,050 in cashback + rewards. As always, the conditions for each of these incentives must be satisfied to get them--so read the fine print.

Personally, I think it's a very competitive product for uninsured non-high ratio mortgages, and you can mitigate the chances of poor service by getting a good RM.