Compare HSBC Mortgage Rates in Canada
Get rate alerts so you’re always in the know
Compare HSBC Mortgage Rates in Canada
HSBC is a global bank that serves mortgage customers in Canada, with its headquarters in London, England. While HSBC isn’t considered one of the Big Five Canadian banks, its worldwide reach and long history as a global financial institution position it as an A-lender, like some of the other main Canadian banks.
- HSBC is a global bank with its headquarters in London, England.
- HSBC offers a range of traditional and other mortgages, including fixed and variable rate options.
- HSBC Canada is the country’s 7th largest bank, and a direct competitor of the Canadian Big Five / Big Six Banks.
Compare HSBC Mortgage Rates
Here is a comparison of the mortgage rates you can get from the Big Canadian Banks, including HSBC’s Canada presence. This table includes the current rates for different terms and types of mortgage from HSBC and other major Canadian banks, and how they each compare.
When comparing rates, look at rates from multiple lenders. Generally, it’s best to go for the lowest possible rate, since you could save thousands over the lifetime of your loan, however you may want to look into the lenders, their solutions, and how these might benefit you, even if the rate isn’t the lowest available.
Top 5 Big
The top 5 big bank rates all in one easy-to-view table. See their rates then beat their rates (or get $500) with nesto’s low rate guarantee.
How to Compare Bank Rates from Big Banks
When you’re comparing rates from banks like HSBC, and the other Canadian Big Five banks, you’re generally talking about conventional lenders, who have some of the lowest rates available compared to private and other alternative lenders. (There are a range of different lender types in Canada).
When you’re looking for the best rate, A-lenders like nesto and the Big Five update their rates regularly based on changes in the Bank of Canada’s key interest rate. Ultimately, you want to go for the lowest rate possible, since a lower interest rate could save you thousands over the lifetime of your mortgage. The best way to compare rates is to check out multiple lenders at once and see what’s available. You also want to make sure you find a mortgage solution that works for your situation, and here it helps to know the pros and cons of fixed versus variable rate mortgages, and other different types of mortgages in Canada.
Finally, if you’ve found a rate from a lender other than nesto, we guarantee that we’ll match or beat it, or you could get $500. Learn more about nesto’s low rate guarantee.
HSBC Overview & Stock Information
Originally named the Hongkong and Shanghai Banking Corporation Limited, HSBC was established in 1865 to fund growing trade between Europe, India and China. HSBC Bank Canada is a subsidiary of HSBC Holdings plc, and has been a leading international bank in the country for 40 years. Although HSBC Canada is not considered one of the Big Five, or Big Six, Canadian domestic banks, it’s still a popular mortgage provider for many customers, and is currently Canada’s 7th largest bank.
Listed on the London Stock Exchange as HSBC, shares in the company trade for around 500 GBX (penny Sterling) at the time of writing, with a year-to-date low of 359.75 GBX and a high of 567.20 GBX. The company’s global CEO is Noel Quinn, and the Group General Manager, President and Chief Executive Officer for HSBC Bank Canada is currently Linda Seymour.
HSBC Prime Rate
HSBC’s current Prime rate is 4.7%. The bank uses the prime rate as a basis for a number of products, like 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. These are generally large corporations. Prime rates are combined with a positive or negative spread (e.g. +/- 1.5%) for most lending products, depending on risk levels.
Here is an overview of the Bank of Canada’s Prime Rate historically.
HSBC 5-Year Fixed and Variable Rate History
Currently, HSBC’s fixed rate 5-year mortgage is 4.96%, which is more competitive than some of the Big Five Banks. Similarly, HSBC’s variable rate 5-year mortgage is also competitive at the time of writing, at 4.19%. Historically, HSBC’s 5-year fixed and variable rate mortgages have remained competitive with national trends. Here’s an overview of HSBC’s 5-year fixed rate and variable rate mortgages over the last few years.
HSBC Mortgage Products
HSBC has a wide range of mortgage products for residential consumers. HSBC’s rates are generally competitive with other big banks, but it depends on what you individual risk level is to the bank what your rate might be in the end. Here is a breakdown of HSBC’s primary mortgage products at the time of writing.
HSBC Traditional Mortgage
HSBC’s Traditional Mortgages include the bank’s fixed and variable rate mortgages, which they offer as closed and open products. HSBC currently offers the following Special Offers on these term lengths and rates, at the time of writing.
|Term Type||Mortgage Rate|
|2 year Fixed Closed||5.04%|
|3 year Fixed Closed||5.09%|
|5 year Fixed Closed||4.96%|
|7 year Fixed Closed||4.96%|
|10 year Fixed Closed||5.54%|
|5 year Variable Closed||4.19%|
HSBC’s Fixed and Variable rate mortgages
HSBC offers both conventional fixed and variable rate mortgages. For fixed rate mortgages, payments will be the same every month, and the amount of your payment applied to principal and interest will follow a predetermined schedule, so it’s easy to budget for. With variable rate mortgages, you may end up paying less over the lifetime of your loan overall if rates are not volatile, and remain low.
|6 months (Closed)||7.45%|
|1 year (Closed)||6.35%|
|6 months (Open)||4.89%|
|1 year (Open)||5.04%|
|2 year (Open)||5.14%|
|3 year (Open)||5.19%|
|4 year (Open)||5.34%|
|5 year (Open)||5.79%|
|7 year (Open)||5.84%|
|10 year (Open)||6.19%|
|3 year (Open)||8.00%|
|5 year (Closed)||4.90%|
HSBC Equity Power Mortgage
Like many other big banks, HSBC offers a variation of a common mortgage product that bundles a lump sum loan into your mortgage so that you can take out equity as cash. HSBC’s Equity Power Mortgage lets you borrow against equity you’ve built, up to 80% of the value of your home, for things like debt consolidation, renovations, or other purchases. You can also benefit from a combination of fixed and variable terms with HSBC’s Equity Power Mortgage.
HSBC Home Equity Line of Credit
HSBC’s Home Equity Line of Credit (HELOC) also lets you access equity, like the Equity Power Mortgage, but instead of providing you with a lump sum this line of credit is revolving, meaning you’ll only pay interest on what you actually spend each month.
New to Canada Mortgage
HSBC’s New to Canada Mortgage is designed for new immigrants and foreign workers. The product is made to be flexible to the various needs of newcomers to Canada, and includes features like keeping your foreign credit history, pre-arrival setup, and a range of accounts to suit newcomers’ needs.
HSBC Mortgage Payment Increases
In mortgage terms, prepayment describes when a borrower pays off some or all of their mortgage early, with a lump sum payment, or by increasing their monthly payments. Each major bank has different amounts you can pay off each year on your mortgage. Some mortgages come with more attractive prepayment options, so it’s worth looking into if you want the flexibility of being able to pay back your mortgage early.
Along with BMO, HSBC provides fairly generous prepayment options on many of their mortgages – up to 20% in some cases. This means you can increase your monthly payments by up to 20%, once each calendar year, which will help you pay down your mortgage faster.
HSBC provides a range of options for mortgage payment increases. For their Traditional Mortgage products, the bank offers flexible payment options allowing you to prepay up to 20% of the original mortgage amount, or by increasing the payment amount up to a total of 20% each year. You can also make a match payment and miss one later.
HSBC Annual Mortgage Prepayment
HSBC provides one of the highest prepayment amounts of any of the other major banks, at 20%. However, it’s worth comparing each bank and looking into the terms and conditions of prepayment for the mortgage product you’re interested in, as some banks have slightly different terms, even if their prepayment amount might not be as high.
|Canadian Bank Closed Mortgage Prepayment Amounts|
Renewal Process with Big Banks
If you’re renewing your mortgage with a bank like HSBC, it’s worth knowing the process, both for renewing with the same lender, and what your options are with other lenders. If you’re renewing with the same lender, the process involves getting in touch with HSBC directly to explore your renewal options. Generally, the bank sends a reminder notice in the months leading to your term’s renewal date, along with an offered rate.
Ultimately, the renewal process will bring up questions about whether or not you have to renew your mortgage with your current bank. You do not. Once your term expires, you have the choice to renew with any bank or mortgage provider. If you’re looking to renew your current HSBC mortgage with another lender, it’s worth shopping around for better rates beforehand.
At nesto, we help you find the best rates available on your mortgage, and we also lend directly. Our simple renewal process guide explains in more detail how to renew your mortgage with a new lender. To get started and renew with nesto from an HSBC mortgage, start by finding the best rate available near you, at least a couple months before your current term is due to expire. Once you’ve found a solution you’re interested in, simply get in touch and a mortgage advisor will help you through the process. Renewing your HSBC mortgage with nesto is a simple, hassle-free process that could save you thousands over the lifetime of your mortgage compared to the Big Banks.
Frequently Asked Questions
Are HSBC’s rates lower than other big banks?
HSBC currently offers fairly competitive market rates, with their variable and fixed rates beating a number of the Big Five banks by a few fractions of a percent. At the time of writing, HSBC’s fixed rate 5-year mortgage is 4.96%, and their variable rate 5-year mortgage is 4.19% Historically, HSBC’s rates have been fairly in line with the other big Canadian banks.
What are the benefits of choosing a smaller lender?
Some smaller lenders like credit unions and other alternative lenders may be able to offer lower rates than the big banks like HSBC. However, big banks and other A-lenders typically have more stringent lending criteria that allow them to offer lower rates than you can find elsewhere because they opt for less risky borrowers. HSBC is a globally recognized bank with a good reputation for mortgage customers.
How do I get a mortgage with HSBC?
HSBC offer an online prequalification tool for their mortgages, and require that applicants meet the following criteria before applying for a mortgage: Be at least the age of majority, 18 or 19 years of age depending on your province. Be a Canadian resident. Provide personal details and gross annual income (pre-tax). Give consent to HSBC obtaining a credit report. If you are applying for a joint loan, the co-applicant must complete the application. If there is more than one co-applicant, call HSBC directly to confer. All HSBC mortgages are subject to standard credit approval. HSBC offers online chat, in-branch service, and help by phone for mortgage applications.
HSBC is a relatively new bank to Canada (around 40 years), but has been a global financial institution for much longer. It is Canada’s 7th largest bank, and services thousands of mortgage customers every day. With solid prepayment options and a range of mortgage products, HSBC is a popular choice for many Canadian mortgage applicants and borrowers. Ultimately, if you’re looking to find the best rate possible with the big banks, compare several bank rates at the same time to see who offers the lowest possible. At nesto, not only do we help you compare the best rates, we also lend directly. Get in touch now to speak with one of our advisors about finding the lowest rate for you.
Lock in your mortgage rate for 150 days*