HSBC Mortgage Rates & Reviews
HSBC Background
As of October 2020, HSBC is the 6th largest bank in the world and the largest foreign bank operating in Canada. HSBC was named after its founding bank, the Hong Kong and Shanghai Banking Corporation Ltd. The founder, Thomas Sutherland, founded the bank in 1865 when he recognized the need for increased banking services in Hong Kong and China to facilitate the growing trade between China, India, and Europe. HSBC currently employs 232,000+ employees and has over 54 million customers worldwide.
HSBC Fixed-Rate Mortgages
HSBC Fixed-Rate Mortgages are ideal for homeowners who want predictable interest and principal repayments on their mortgage and homeowners who do not have time to constantly monitor the changing interest rates. Your interest and principal repayments on your mortgage will stay the same every month and will be paid according to a fixed schedule.
| Term | Rate | Monthly Payment |
|---|---|---|
1-Year Fixed | 2.49% | $1,792 |
2-Year Fixed | 1.74% | $1,645 |
3-Year Fixed | 1.89% | $1,674 |
4-Year Fixed | 3.84% | $2,076 |
5-Year Fixed | 2.24% | $1,743 |
7-Year Fixed | 5.64% | $2,490 |
10-Year Fixed | 2.74% | $1,843 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
HSBC Variable-Rate Mortgages
HSBC also offers Variable-Rate Mortgages. A variable-rate mortgage is a mortgage loan with an interest rate that fluctuates with the prime rate. Your mortgage payments will stay the same, but the portion of your payment used towards paying interest will change depending on the current variable interest rate offered by your bank.
Traditionally, in an environment where interest rates are decreasing, HSBC Variable-Rate Mortgages have helped homeowners save on the total amount of mortgage interest payments they are paying. However, for variable-rate mortgages, if the interest rate increases, you will need to pay more interest on your mortgage. If you are concerned about interest rates rising in the near future, HSBC offers variable-rate mortgages that can be converted to a fixed-rate any time during your current term.
| Term | Rate | Monthly Payment |
|---|---|---|
2-Year Variable | 1.24% | $1,551 |
3-Year Variable | 3.95% | $2,100 |
5-Year Variable | 1.39% | $1,579 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
HSBC Prime Rate
HSBC's Prime Rate is used as the basis for many of HSBC's lending products including variable rate mortgages, lines of credit, and HELOCs. Prime, or P, is normally combined with a spread to make up the final interest rate.
Current HSBC Prime Rate: 2.45%
HSBC Prime Rate History
HSBC Posted Rates
HSBC Posted Rates are the official rates used when calculating yourmortgage break penalty , the fee you pay if you want to break or refinance your mortgage early or before the end of your mortgage term. This posted rate is much higher than the mortgage interest rate that you get from the bank, as it is intended to act as a penalty for breaking your mortgage contract early. This is compared to the interest rate you receive on your mortgage, which is based on what you were approved for when you initially applied for a mortgage. To find out what interest rate you could be approved for on your mortgage, a mortgage pre-approval allows you to lock-in an interest rate for your mortgage for up to 120 days. The mortgage stress-test determines if you will still be able to afford your mortgage payments if the interest rate on your mortgage increases by a certain percentage. The interest rate used for the mortgage stress-test is also higher than the interest rate you are charged on your mortgage.
| Term Length | HSBC Posted Rate |
|---|---|
| 1-Year Fixed | 2.49% |
| 2-Year Fixed | 3.04% |
| 3-Year Fixed | 3.44% |
| 4-Year Fixed | 3.94% |
| 5-Year Fixed | 4.59% |
| 7-Year Fixed | 5.64% |
| 10-Year Fixed | 5.99% |
HSBC Mortgage Break Penalty
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
Difference in interest payable between the amount of interest owed from the time of payment to maturity, using an interest rate that is your current mortgage rate less HSBC’s current posted rate for a comparable remaining term, less any rate discount that you received.
HSBC HELOCs
As of October, 2020, the current HSBC HELOC Mortgage rate is 3.20%, or Prime + 0.75%.
The HSBC Home Equity Line of Credit (HELOC) allows you to borrow money from the equity portion of your home. The equity portion of your home is the amount of home that you own and is calculated as the fair market value of your property minus the outstanding mortgage balance you have on your home. The HSBC HELOC can help you pay off any outstanding debt you have that is at a higher interest rate or it can help provide necessary funds to renovate or upgrade your home. You borrow as much or as little as you like and the interest is only charged on the amount that you borrow. To calculate how much you can borrow from your HELOC, use the Home Equity Line of Credit Calculator. As of October 2020, the HSBC HELOC Mortgage rate is 3.20%, or Prime + 0.75%.
Lowest Mortgage Rates in Canada
Since June 2020, HSBC has offered some of the lowest rates on its fixed and variable 5-year closed mortgages, and these rates are lower than the ones offered by the Big 5 Canadian banks. Mortgage rates in Canada have dropped to historical lows since the start of the COVID-19 pandemic. To find the best rate, you can compare the mortgage rates from all lenders.