With interest rates at historic lows, now is a great time to lock in a low mortgage rate for the long-term. But it’s not always easy to choose the best mortgage option. To help you out, here are some of the best options available from HSBC:
HSBC Variable Term Mortgage
If you’re looking for a flexible mortgage option, the HSBC Variable Term Mortgage is a great choice. Variable rate mortgages are usually more expensive than fixed rate mortgages, but they offer more flexibility in terms of adjusting your interest rate as market conditions change.
The HSBC Variable Term Mortgage allows you to choose between two types of adjustments: monthly and yearly. When you choose monthly adjustments, your interest rate will change once every month based on changes in the prime rates set by Canada’s major banks—HSBC sets its own prime rate independently of other banks’ prime rates. If you decide to have yearly adjustments instead, HSBC will review your contract each spring or fall to determine whether there have been any changes in interest rates since the previous year’s review.
HSBC Fixed Term Mortgage
Paying off your mortgage early is a great way to build up your savings and get out from under debt faster. The HSBC Fixed Term Mortgage allows you to do exactly that, without any penalties.
If you’re looking for a fixed rate mortgage with no prepayment penalty and the option to choose your payment schedule, this is one of the best products on the market today. It also offers other benefits such as flexibility in terms of choosing whether you want a 5 year or 7-year term length, as well as being able to pick between variable rate mortgages or fixed rate ones.
Additional options available
If you want to invest in real estate, the HSBC package includes the option to use your line at any time without penalty—whether it’s for buying an investment property or making improvements on one that already belongs to you.
If you’re planning on taking advantage of this option, we recommend getting pre-approval on your mortgage rates HSBC before submitting an offer on any property you’re considering buying so that when it comes time to write up the paperwork with your mortgage broker and lawyer, they can discuss all available options before making any decisions about how much money should go toward each expense category (e.g., closing costs).
Home equity lines of credit (HELOC)
A home equity line of credit (HELOC) is what you get when you borrow against the equity in your home. Your bank will give you a credit limit, and every month, they’ll pay interest on that balance. You can use the money for any purpose—usually it’s used to pay off other high-interest debt or make home repairs.
If you have a HELOC, it’s important to keep track of how much has been borrowed so that there aren’t any surprises!
Open mortgage option: Only pay interest for the first 6 months of your term.
If you choose an open mortgage option, the bank will only charge you interest for the first 6 months of your term. The variable interest rate of Prime + 1%. You have to pay back all principal after that period, or your monthly payment will be adjusted.
As you can see, the HSBC mortgage options are quite diverse and flexible. Whether you want to pay off your mortgage faster or just save money on interest payments, HSBC has a solution for everyone. To learn more about these products and how they can help you achieve your financial goals, contact us today!