20% or More
Specification: HSBC 7-year Fixed Mortgage Rate
HSBC Mortgage Products
HSBC is a top-rated bank that has a global reputation in the financial services industry. It runs four separate business operations – Commercial Banking, Global Private Banking, Global Banking and Markets, and Wealth Management – and serves over 37 million customers across the world
The bank offers two major mortgage products – the HSBC Advance Mortgage and the HSBC Premier Mortgage. You can get these loans for buying a property or a home. Here is the breakdown on calculating payments, the functions of mortgage calculators, brief introduction to the two mortgage types, and a few ways to reduce the mortgage payment.
How to Estimate Payments?
HSBC estimates the mortgage payments based on these following criteria:
- The price of purchasing the property or the mortgage renewal amount
- Down payment amount (when purchasing a home)
- The amortization period
- The rate of the mortgage
You have to put the value of these variables into the mortgage calculator to find out the payments you owe to the bank.
HSBC Mortgage Calculator
HSBC offers mortgage calculator tools for the customers to figure out the mortgage affordability and the flexibility of terms before taking the service. You can use the tools for:
Estimating the Payments – It lets you experiment with interest rates, amounts, and payment options. To calculate, you have to put four variables:
- Mortgage amount
- Interest rate
- Amortization period (ranging from 5 to 30 years)
- Payment frequency (ranging from weekly to monthly and various stages in between)
Calculating the Borrowed Amount – Most people remain confused about the amount they can actually borrow from the bank. Well, this tool lets you figure out that amount. Just enter these variables:
- Annual family income before the tax deduction
- Monthly expenses
- Down payment
- Mortgage interest rate
- Amortization period (ranging from 5 to 30 years)
Determining the Repayment Charge – If you have the financial solvency to pay off the mortgage early, HSBC has a separate mortgage calculator to estimate your repayment charge. The variables vary depending on whether it is a fixed rate closed mortgage or a variable rate closed mortgage.
If you are shopping for the HSBC mortgages, there are two major products – the HSBC Advance Mortgage and the HSBC Premier Mortgage. You have to be an HSBC customer to avail of any of these products. Also, remember that all mortgages are likely to undergo standard credit approval.
The HSBC Advance Mortgage
The first requirement for applying for this service is to be an HSBC Advance customer. You have to be the holder of an HSBC Advance chequing account, maintain a specific amount with the bank or its subsidiaries, and hold a residential mortgage of a fixed amount with the HSBC Bank Canada.
If you don’t meet any of these criteria but want to take the mortgage, the bank will charge you a monthly fee of $25. Furthermore, it will ask you to provide your personal details along with the gross annual income before the tax deduction. It also holds the right to obtain your credit report from the credit bureaus.
So, the eligibility requirements for this mortgage product are:
- An active HSBC Advance chequing account under your name
- You are an adult and at least 18 or 19 years of age
- You are a Canadian resident
- An amount of at least $25,000 in personal deposits and investments combined with the bank and its subsidiaries
- Minimum $150,000 as personal HSBC residential mortgage balance
- The co-applicant(s) must fill up the application in case of a joint loan
As an HSBC Advance Account holder, the clients will enjoy multiple benefits that standard account holders don’t have access to. The bank will offer them an exclusive interest rate on residential mortgages. A bunch of tools and services will be at their disposal for managing their credit, account, and cash flow more efficiently.
HSBC Premier Mortgage
Just like the Advance Mortgage, a customer has to have an HSBC Premier account to apply for this product. Additional requirements include maintaining a minimum amount in personal deposits and investments and has a residential mortgage with a fixed balance. The bank will charge a monthly fee in violation of any of these conditions.
Additionally, HSBC will ask you to provide your gross annual income report before tax deduction and personal details. It will have the right to obtain your credit report from any of the credit bureaus, Equifax or TransUnion. You have to provide the details of your co-applicant(s) and they need to complete the application in case of a joint loan.
The eligibility criteria for obtaining an HSBC Premier Mortgage are:
- You are an HSBC Premier Account holder
- You are an adult and a Canadian resident
- Maintaining a balance of $100,000 or more in personal deposits and investments with the bank and its subsidiaries
- Holding a balance of $500,000 or more in a residential mortgage with the HSBC Bank Canada
- Having the eligibility for being an HSBC Premier in another country
Being an HSBC Premier Account holder comes with a bunch of facilities. You will enjoy unlimited day-to-day banking including cash deposits, withdrawals of money, and cheques across all the platforms – in the branches, ATMs, mobile banking, and over the telephone. The clients will also get exclusive facilities in other countries.
How to Reduce the HSBC Mortgage Payments?
HSBC offers some of the best mortgage rates among all financial institutions in Canada. But, who does not love to have the opportunity to pay at a lower rate? Your financial conditions can change over the amortization period and if it improves, use it to trim a large portion of the mortgage.
The HSBC offers 4 easy ways to reduce the mortgage payments and lower the ongoing interest rate:
- Apply for an exclusive HSBC program including HSBC Advance and HSBC Premier.
- Take advantage of the HSBC Smart Saver Mortgage. This smart savings option helps you to pay off the mortgage quicker and save thousands of dollars in interest.
- If your financial status improves, increase the frequency of payments to decrease the number of total years, ending up paying less than what was estimated in the beginning. HSBC provides windows to increase your schedule payment by 20% or more.
- Another option is to be an HSBC MasterCard user and use the reward points earned on daily shopping as credits for repaying the mortgage.