HSBC has been a major player in the Canadian home loan market for years. Its prime rate is 1.46 per cent, representing a discount of 1.46 percentage points over the current prime rate. Bank of Canada overnight rate is a benchmark for lenders, with the current figure at 0.25 per cent. In contrast, the bank’s conventional five-year fixed mortgage rate is 4.79 per cent.
HSBC has been offering variable rates below one percent for nearly a year. Some industry watchers say this is a record low. This promotion applies only to high-ratio insured mortgages, which protect the lender against defaults. It also offers a five-year closed term tied to the bank’s prime lending rate. These low rates are good news for those who are concerned about the high cost of borrowing.
As the prime rate is linked to the economy, HSBC mortgage rates may change as the economy improves. However, the company offers a $1,000 cash back guarantee for its 5 year fixed-rate mortgages. These low rates are only available until the end of March. Moreover, HSBC offers a number of other incentives for mortgage borrowers such as lower interest payments, free credit reports, and other services.
The lowest fixed rate available in Canada is 0.99 per cent. But it’s important to understand that the rate could rise if the central bank or HSBC decides to increase the rate. Nevertheless, the Bank of Canada has pledged to keep rates low until 2023. The goal is to stimulate economic growth by keeping borrowing rates low. That way, you can get the lowest rate. This is good news for Canadian home buyers.
The record-low 5-year fixed rates for mortgage rates ontario canada today are a boon for inflation-conscious homeowners. The bank’s prime rate is 2.45%, and most Canadians were paying more than three times that amount two years ago. Fortunately, HSBC has dropped its variable rate to 0.99%. Its prime rate is 1.46%, so the lowest five-year fixed rate is now 1.99%.
While the record-low five-year fixed rate is not ideal for inflation-conscious homebuyers, HSBC’s 0.99 per cent variable rate is also a good thing for those who are concerned about inflation. With a HSBC mortgage, you can be assured that you won’t be caught short when the time comes to pay back your loan. The average five-year fixed rate is 3.8 years, making it more advantageous for investors and homeowners.
HSBC mortgage rates are the best option for many Canadian homebuyers. As the variable rate has fallen to record lows, this type of mortgage is a popular choice for many consumers. While the five-year fixed rate is a good choice for some buyers, it’s important to consider all factors before you commit to a loan. While the term of the mortgage can affect the affordability of a home loan, it’s always better to stick to the fixed rate for the most stable home purchase.