Compare HSBC Mortgage Rates in Canada

HSBC is a global financial institution with its headquarters in London, England and serves mortgage customers in Canada. Despite not being one of the “Big Five” Canadian banks, its extensive global presence and long-standing history as a financial institution place it in the same league as some of the other leading Canadian banks.

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Key Highlights

• HSBC is an international financial institution based in London, England. 
• It provides a diverse selection of HSBC mortgage options, including both fixed and variable rate options. 
• Additionally, HSBC Canada is a major player in the banking industry, ranking as the 7th largest bank in the country and competing directly with the top five or six banks in Canada.

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Compare HSBC Mortgage Rates

In this table, you will find a comprehensive comparison of the HSBC mortgage rates and others offered by the leading Canadian banks. The rates listed are current and encompass various terms and types of HSBC mortgages along with those offered by other major Canadian banks. It is important to note that when looking at the HSBC mortgage rate, it is beneficial also to consider rates from multiple lenders.  

How to Compare Bank Rates from Big Banks

When you are in the market for a mortgage, it is important to compare the rates offered by different lenders. Conventional banks such as HSBC and the Canadian Big Five typically offer some of the most competitive rates. However, it is important to note that there are a variety of lender types available in Canada, including private and alternative lenders. A-lenders like nesto and the Big Five tend to update their rates regularly in response to changes in the Bank of Canada’s key interest rate. Usually, HSBC high interest rate reflect an increase in the Bank of Canada rate. To secure the best rate possible, it is recommended to compare rates from multiple lenders and consider the pros and cons of different types of mortgages, such as fixed versus variable HSBC mortgage rates. Additionally, nesto offers a low rate guarantee where they will match or beat any rate found from a lender other than nesto, or you could get $500.

HSBC Overview & Stock Information

HSBC, originally named the Hongkong and Shanghai Banking Corporation Limited, was founded in 1865 to support the expanding trade between Europe, India, and China. As a subsidiary of HSBC Holdings plc, HSBC Bank Canada has been a prominent international bank in the country for the past 40 years. 

Despite not being one of Canada’s “Big Five” or “Big Six” domestic banks, it is still a widely-used provider of mortgages and is currently ranked as Canada’s 7th largest bank. The company’s shares, listed on the London Stock Exchange under the symbol HSBC, have been trading around 551.70 GBX (penny Sterling) at the time of writing, with a year-to-date low of 434.70 GBX and a high of 653.80 GBX. The current global CEO of HSBC is Noel Quinn, and the Group General Manager, President, and CEO for HSBC Bank Canada is Linda Seymour.

HSBC Prime Rate

HSBC currently offers a Prime rate of 7.20%, which serves as the foundation for various financial products such as HSBC mortgages, credit lines, and credit cards. A prime rate is the interest rate that commercial banks charge customers that represent the lowest level of risk. This rate is then adjusted with a positive or negative spread, depending on the level of risk associated with the specific lending product.

HSBC 5-Year Fixed and Variable Rate History

Currently, you can get a highly competitive 5-year fixed rate HSBC mortgage at 5.79%, which is better than some major banks. Additionally, their 5-year variable rate mortgage, currently at 6.40%, is very competitive. Historically, HSBC has consistently maintained competitive rates for their 5-year fixed and HSBC variable rate mortgages compared to industry standards. Here’s a summary of HSBC’s 5-year fixed-rate and variable-rate mortgages over the past few years.

HSBC Mortgage Products

There is a diverse selection of HSBC mortgage options for individuals seeking to purchase a home. HSBC interest rates are comparable to other major financial institutions. However, the rate offered may vary depending on the borrower’s perceived level of risk. Presently, the following are some of the primary HSBC mortgage products.

HSBC Traditional Mortgage

HSBC offers a variety of traditional mortgage options, including both fixed and HSBC variable rate mortgages, which are available as closed or open products. As of the current time, you can also select from a number of special offers on these HSBC mortgages, including various term lengths and HSBC interest rates.

HSBC’s Fixed and Variable rate mortgages

HSBC provides customers with a variety of mortgage options, including both fixed and variable rate options. With a fixed HSBC mortgage rate, the monthly payments remain the same, and a predetermined schedule is used to allocate payments toward the principal and interest. This makes budgeting for a fixed-rate mortgage easy. Alternatively, with an HSBC variable rate mortgage, the HSBC interest rate may fluctuate, but if rates remain low, you may ultimately pay less throughout the loan.

HSBC Equity Power Mortgage

Like many other major banks, HSBC offers a mortgage product called the Equity Power Mortgage that allows you to borrow against the equity you’ve built in your home, up to 80% of its value. This can be used for various purposes, such as consolidating debt, home renovations, or making other purchases. Additionally, this HSBC mortgage product offers the flexibility of both fixed and variable terms.

HSBC Home Equity Line of Credit

HSBC’s Home Equity Line of Credit (HELOC) is a financial product that allows you to borrow against the equity in your home. Like the Equity Power Mortgage, it allows you to access the equity you have built up in your property, but unlike a lump-sum loan, it is a revolving line of credit. This means that you only pay interest on the amount that you borrow each month rather than on a fixed amount upfront.

New to Canada Mortgage

HSBC’s New to Canada Mortgage is a product specifically tailored to meet the unique needs of new immigrants and foreign workers in Canada. It is highly flexible, considering the varying needs of newcomers, and includes features such as the ability to maintain a foreign credit history, pre-arrival setup, and a range of accounts to suit the specific needs of these individuals.

HSBC Mortgage Payment Increases

In the context of HSBC mortgages, prepayment refers to paying off a portion or the entirety of a mortgage before its maturity date. This can be accomplished through a single lump sum payment or by increasing monthly payments. Financial institutions have different limits on the amount that can be prepaid each year, so it is important to research other options available when choosing an HSBC mortgage. 

Some lenders, such as BMO and HSBC, offer more attractive prepayment options, allowing borrowers to pay off up to 20% of their mortgage annually. With HSBC, the bank offers flexible payment options for their Traditional Mortgage products, including the ability to prepay up to 20% of the original HSBC mortgage amount or increase the payment amount by a total of 20% each year, as well as the option to make a catch-up payment and miss one later.

HSBC Annual Mortgage Prepayment

HSBC offers one of the most generous prepayment options among major banks, with a rate of 20%. However, it is important to thoroughly compare the terms and conditions of prepayment for different HSBC mortgage products and those offered by various banks, as some may have slight variations, even if their prepayment rates are lower.

Renewal Process with Big Banks

When renewing your mortgage, it is important to note that you are not obligated to renew with your current bank. Once your term is up, you can shop around and choose any lender or mortgage provider that best suits your needs. If you are considering renewing your HSBC mortgage with a different lender, it is recommended to research and compare rates beforehand. At Nesto, they assist in finding the most competitive rates on your mortgage and also offer direct lending options. This guide on the renewal process provides detailed information on how to renew your mortgage with a new lender. To begin renewing your HSBC mortgage , start by researching the best rates in your area at least a couple of months before your current term expires. Once you have found a solution that interests you, reach out to mortgage advisors who will guide you through the process. 

Frequently Asked Questions

Are HSBC’s rates lower than other big banks?

HSBC offers homeowners a competitive edge with market rates that beat the five major Canadian banks. Currently boasting an impressive 5-year fixed rate of 5.79% and variable rate of 6.40%, HSBC has consistently rivaled its peers in terms of interest returns, making it solid choice for those looking to invest their money wisely.

What are the benefits of choosing a smaller lender?

With HSBC as a globally recognized, reputable bank and its A-lender status affording them stringent lending criteria on top of it, they can reliably offer mortgage customers some of the lowest rates around. That being said, credit unions or other alternative lenders may be able to beat out even those competitive deals – though these sources come with their own set of risks that could prove costlier in the long run.

How do I get a mortgage with HSBC?

Secure your dream home with the help of HSBC’s straightforward mortgage prequalification tool. Canadian residents 18 or 19 years and older can confirm they meet set criteria – including income, credit score qualifications, and proof of residency status – in just a few simple steps! Whether you’re applying alone or jointly with others, at any point during filling out an application feel free to leverage support through online chat service or by phone for assistance from their friendly team members ready to guide you towards buying your ideal property today.

Final Thoughts

HSBC has been operating as a global financial institution for many years and is a relatively new bank in Canada, with around 40 years of presence in the country. It is the seventh largest bank in Canada, serving thousands of mortgage customers daily. The bank offers a good HSBC mortgage rate on products and solid prepayment options, making it a popular choice among Canadian mortgage applicants and borrowers. To ensure you get the best rate possible, it is recommended to compare several bank rates at the same time.