Mortgage Resources - Searching for a Home

Whether you’re a first-time homebuyer or purchasing a home for the second or third time, the journey to owning a valuable piece of real estate is exciting, and rewarding.

There are so many decisions to be made, and they are decisions that have long-term consequences. Yet there are many experts with specialized advice who are ready to help you make the best choices for you, your family, and your future.

With this information, the agent will be able to send you listings of properties that meet your requirements. The more detailed you are, the better the selection your real estate can give you.
For each property, your real estate agent can provide you with:

• Details featuring the main specifications of each property.
• Photographs of the home.
• Online virtual tours.

With this information, you can decide which properties you are interested in viewing in person.

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Step 2: Building your home

Another option for finding the house of your dreams is to build it yourself. You can build a home two ways: use a builder or be the general contractor yourself.

Using a Builder

You may not have the time or expertise associated with building a home, but a qualified builder does. And it is important to choose a good one.

When selecting a builder, here are some questions you should consider:

• What kind of home do you want to build?
• Does the builder have extensive experience constructing homes with your design and in your price range?
• What kind of reputation does the builder have? Are his or her references solid?
• What kind of warranty coverage is the builder prepared (or able) to offer?
• Does the builder construct energy-efficient homes?
• Who will be responsible for correcting problems with major appliances?
• What level of service is available after the work is completed? Whom should you contact?
• Is the builder bonded and insured or a member of a new home warranty program?

Acting as General Contractor

If you have previous building experience, know reliable trades people, and have enough time to supervise the project, you may want to be your own general contractor.

Acting as your own general contractor can save you time and give you the kind of control and satisfaction you may not otherwise have if you hired a professional builder.

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Step 3: Viewing the property

To have a successful viewing of a property, remember the following:

• Do not get carried away by the initial excitement you may feel.
• Do not let yourself be persuaded either by the owners or real estate agent.
• Ask for a second viewing to assess the property on your own, especially if you feel pressured during your initial viewing.
• Ask a friend who has been through the homebuying process before to accompany you.
• Take notes so that you can remember the details later.

Outside the property

Before you go into the house you’re viewing, assess the exterior. What are your immediate impressions:

• Has the property been cared for or has it been neglected?
• Is the front yard well-tended or overflowing with weeds, littered with leaves, or obscured by brush?
• Does the state of the front yard extend to the rear of the property?
• Look at the roof and building material (e.g., brick, concrete, wood) to assess its general condition.

Inside the property

When you are inside the house, try not to pay too much attention to the décor or furnishings. Sometimes, a recent re-decorating effort could actually be concealing one or two problems.

The most important aspect of the property is its structure. With the same keen observation you used when assessing the outside of the property, look for any obvious signs of neglect and general defects on the inside:

• Is there evidence of dampness?
• Is the electric wiring old?
• Does the plumbing appear dated?
• Are there any cracks in the walls or unevenness of the floors?
• How well does the air circulate throughout the home?

Make notes of any observations or concerns that you may have about the property.

Before you decide to buy a property, determine whether you can afford essential repairs or renovations. HSBC can help you with any home improvement or home repair project by offering flexible Lines of Credit or an Equity Power Mortgage.

Remember that one of the most valuable sources of information can be the present owners.

• If it is an older property, ask when it was re-wired.
• If there are larger new items, such as the furnace, ask if the guarantee is transferable to the new owner.
• Ask what general maintenance has been done.
• Inquire about the property’s running costs.
• Find out the amount of the monthly gas and electricity bills.
• Make a note of the property tax that is payable.
• Find out exactly what is included in the owners’ asking price.

Before you make an offer, ensure that all your questions and concerns have been properly addressed

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Step 4: Making the offer

When you have found the home you want, it is time to make an offer.

The majority of sellers realize that while they cannot normally negotiate the price up, they can bring it down. This means you may have some leverage when deciding what to offer.

If the market is buoyant and the property is desirable and in a popular area, you probably will not be the only interested party. Your real estate agent will advise you on the best strategy for making an offer.

Base your offer on what the property is worth to you, taking into account what it would cost you to correct any defects.

When you have decided upon the amount you are prepared to pay, you should contact your real estate agent and let them know your offer. Add that your offer is subject to

• Financing.
• A building inspection.
• And any other conditions important to you.

Your agent will contact the sellers’ agent, and then return to tell you whether the offer is acceptable. If it is not, you will need to negotiate a price, or decide to start looking again elsewhere.

• If you have a pre-approved mortgage, we will transfer the terms of your pre-approved mortgage to your regular mortgage.
• If you do not have a pre-approved mortgage, we will begin the mortgage application process.

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Step 5: Choosing a mortgage

HSBC offers many types of mortgages, and within each mortgage option are features that can be tailored to fit your needs and your financial situation.

HSBC Mortgages

Our mortgages are designed to meet your individual needs and finances, as a new home-buyer, renovator, or existing home owner:

• HSBC Smart Savers Mortgage^™.
• Traditional Mortgage.
• Equity Power Mortgage.  

Compare mortgages to find the one that’s right for you

Interest Rates: Fixed vs. Variable

Fixed rate mortgages have a set payment plan where the interest rate remains the same throughout the term of the mortgage:

• Know exactly what your payments will be throughout the term.
• You will not be affected by rising interest rates.
• Note that fixed rates are usually higher than variable rates.

Variable rate mortgages differ from fixed rate mortgages, in that interest rates are not locked in for the full term of your mortgage. When you choose a variable rate mortgage, your payment will be calculated based upon the amount you wish to borrow (the principal) and the interest that will be accrued.

• Variable rates are usually lower that fixed rates.
• While your mortgage payments will not change, the interest rate will.
• If interest rates drop, more of your mortgage payment will go toward paying down your principal. If interest rates go up, less of your mortgage payment will go toward paying down your principal.
• You can lock in to a Fixed Rate Mortgage at any time without any additional cost.

View our mortgage rates.

Repayment Options

HSBC offers several options for how you may repay your mortgage. Decisions about the payment frequency, term, and amortization of your mortgage will not only help you meet your budgetary needs, but they can also help you pay down your mortgage more quickly.

Find out more about how HSBC options can help you save money on your mortgage and get you mortgage-free faster.

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Step 6: Building inspection and property valuation

Building inspection

For your peace of mind, arrange for an in-depth building inspection of the property. A thorough building inspection will give you a clear understanding of the condition of the property, so when you take up residence, you will not be surprised by unexpected repair bills.

Property valuation

When you are approved for a mortgage, a third-party valuation of the property is required, so that we know that the property you intend to buy represents good security for the loan. We use this valuation to help determine the amount of money we are prepared to lend.

When we have received a satisfactory valuation of the property, we will send you a mortgage loan commitment letter. You can now proceed with finalizing the purchase of your property.

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