HSBC Mortgages Review
- Interest Rate (APR)
- 4.79%
Summary
Finance your home in an affordable and convenient way with an HSBC mortgage.
With some of the lowest mortgage rates in Canada, HSBC provides a few different fixed and variable mortgage plans to give you financial flexibility, so you won't feel overwhelmed by your mortgage payments.
As one of the Canada’s reputable banks, HSBC gives everyday Canadians a safe way to finance the purchase of their future home. With some of the lowest mortgage rates in Canada, HSBC provides a few different fixed and variable mortgage plans to give you financial flexibility, so you won’t feel overwhelmed by your mortgage payments.
What types of rates can I get with an HSBC mortgage?
Like many mortgage providers, HSBC tries to give its customers flexibility in the way that they go about paying their mortgage. It offers a few distinct options and also, from time to time, offers special interest rates. Here are some of its more popular regular mortgage products and terms: HSBC 2-year fixed rate closed term mortgage, HSBC 5-year fixed rate closed term mortgage, HSBC 5-year variable rate closed term mortgage.
The difference between fixed and variable rate terms is that for fixed, your mortgage payment remains the same amount throughout the entire duration of your term. Since it’s closed (as opposed to open), you are unable to pay off the entire amount of your principal without being hit with a financial penalty.
Variable rate terms can have fluctuating interest rates throughout the duration of your mortgage term and are affected by HSBC‘s Prime Rate. While your payment amount will always remain the same throughout your mortgage term, the fluctuation of the prime rate can alter the dispersion of your mortgage payment between interest costs and paying off the principal.
What do customers say about HSBC?
InsurEye is a platform that allows users to give honest mortgage reviews to their provider of choice. While the sample size is small, with only 9 customer reviews, the overall sentiment from consumers who had HSBC‘s Fixed Mortgage plan is good with a rating of 3.9 out of 5 stars. Consumers were satisfied with HSBC fixed rate mortgage in terms of customer service, value for the money and product features.
What makes an HSBC mortgage unique?
It’s no surprise that its low mortgage special rates are what make HSBC unique. When it comes to choosing a lender to help finance the purchase of a new home, the primary thing people are looking for are the lowest rates possible. Lower interest rates mean paying less on your mortgage payments and more financial flexibility.
On top of offering low rates, HSBC is also unique in that it offers a vast array of resources to help you with your mortgage. Understanding that a mortgage is a large financial commitment for the majority of people, it can be a daunting issue to tackle. HSBC aims to alleviate any concerns you have about mortgages by walking you through the process and by providing resources about what to expect during the process.
Do I qualify for an HSBC mortgage?
If you want to find out if you qualify for an HSBC mortgage, you can submit a pre-approval application form on the company’s website. You will have to enter basic, personal information as well as answer a few financial-related questions, including information about your annual income and the amount you are requesting to borrow. You will also have to submit your social insurance number so that HSBC can run a credit check to ensure your credit is in good standing.
If everything checks out fine, you will then be contacted by an HSBC mortgage representative within two business days to discuss your application and your financial needs.
What are the benefits of getting a mortgage through HSBC?
- Low rates. HSBC rates are among the lowest in Canada.
- Educational resources. HSBC offers a wealth of excellent resources for first-time homebuyers or for anyone new to the mortgage or money-borrowing process. These resources will help inform and educate you on the entire mortgage process.
- Lock in rates. If you see a rate from HSBC that you think is unbeatable, you can lock it in for a period of up to 120 days with HSBC.
- HSBC Rewards Program. If you’re already an HSBC Mastercard holder and are collecting HSBC Reward Points, you can redeem those points towards reducing your mortgage amount.
- In-person availability. HSBC has branch locations in all of the Canadian provinces (except the Territories), and you can schedule an appointment at an HSBC branch to speak in person with a mortgage specialist.
What to watch out for
- Early payment penalties. If you attempt to pay off your mortgage faster than what is stated in your mortgage agreement, you will be on the hook for a pre-payment charge.
- Rates. If you see a special HSBC mortgage rate, ensure you get that special rate and not HSBC‘s regular rates, which are often much higher.
- Pre-approval process. Some people may find waiting up to three days to get the results of the pre-approval process too long, especially if they just want a simple yes or no answer.
How do I get started?
If you’ve decided you want to explore the possibility of getting a mortgage with HSBC, the first thing you’ll need to do is find out if you’re eligible. To do this, you’ll want to go through the pre-approval application.
As we briefly touched on earlier, going through this process enables HSBC to get a good idea of the amount of money you’re requesting to borrow and will also give the company access to your credit history (by searching your social insurance number, which you will need to provide). Upon filling out the necessary application, you will then have to wait one to two business days for an HSBC mortgage specialist to get back to you with the results of your application. It is only then that you will find out whether you are eligible for a mortgage with HSBC.
Alternatively, if you prefer to go through this process in person, you can do so at any of the HSBC branch locations scattered across Canada. It’s advisable that you phone the HSBC branch and schedule an appointment with a mortgage specialist in case they are not there when you go.
I got the loan. Now what?
If you’ve been given the green light to proceed with a mortgage from the HSBC mortgage specialist, you’ll then want to determine the plan (fixed or variable) you’ll want to select. Once you’ve selected that, the next most important thing is determining a payment schedule. Determining the frequency of payments is an important consideration because you’ll obviously need to have money to be able to make your mortgage payments. For reference, HSBC allows mortgage payments to be made on a weekly, bi-weekly, semi-monthly or monthly basis.
If you still have questions or are unsure of next steps, it’s wise to contact an HSBC mortgage specialist so that they can guide you through the mortgage process and answer any questions you may have.
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Bottom line
HSBC makes it easy for people looking to finance their house by providing them with a number of mortgage options. On top of this, it offers some of the lowest mortgage rates in Canada and it allows you to secure these rates for up to 120 days.
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