Refinancing Mortgage, Mortgage Refinance | HSBC Canada

Mortgages

Mortgage Refinancing

Turning equity into opportunity

Refinancing your home may make sense when your home equity and your financial circumstances will qualify you for additional credit. Refinancing can provide you with the necessary funding to:

  • Lower your borrowing costs when interest rates have dropped
  • Renovate to increase the value of your home
  • Consolidate debt
  • Purchase vacation or investment property
  • Purchase foreign property
  • Pay for tuition
  • Finance retraining or career development

The Equity Power Mortgage calculator can quickly show you how to estimate your available equity and how much you could save by consolidating high-interest debt.

Is refinancing the right way to go?

Now that you’ve established yourself and built up your home equity, you have options. An HSBC mortgage specialist can help you determine if refinancing is the best solution for you.

Some options to consider:

Interest cost savings If interest rates have dropped and you are close to the end of your mortgage term, it may be advantageous to pay off your outstanding balance and open a new mortgage. You can estimate the cost of breaking your current mortgage using our mortgage prepayment calculator.
Debt consolidation Combining all of your higher-interest rate household debt into one convenient payment may free up cash flow to help you tackle some of your other long-term financial goals.
Create a new mortgage term When your financial situation or your tolerance for interest rate fluctuation changes, you may want to extend your current mortgage term. Refinancing gives you power to lock in for a new term with a new interest rate, based on today’s best HSBC rates.

 

Alternatives

Depending on the amount of money you wish to borrow, there may be more effective alternatives to refinancing. For example, if you have just begun a new mortgage term with an interest rate below the current posted rates, you may be better served with a home equity line of credit.

Receive better rates as an HSBC Premier1 or HSBC Advance2 customer

HSBC Premier is a world-class banking solution that provides you with unlimited day-to-day banking and exclusive global benefits-including preferred rates on HSBC mortgages and other products.

HSBC Advance gives you hassle-free everyday banking and expert guidance on building your future-plus preferred rates on HSBC mortgages and other products.

At this rate, you’ll be home in no time. See all rates.

 

The key to unlocking your future home. An HSBC Mortgage could be just what you need. Learn more.

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Mortgage Calculators

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What you need to know before applying

  • You are at least the age of majority, 18 or 19 years of age depending on your province of residence
  • You are a Canadian resident
  • You will be asked to provide personal details and gross annual income (pre-tax)
  • You will be asked to consent to us obtaining your 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, please call us to proceed at 1-866-609-4722
  • All mortgages are subject to standard credit approval.

 

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1  HSBC Advance requires you to have an active HSBC Advance chequing account and maintain combined personal deposits and investments with HSBC Bank Canada and its subsidiaries of $25,000, or hold personal HSBC Bank Canada residential mortgage balances of $150,000 or greater. Some exclusions apply. A monthly fee of $25 may be charged if you do not meet these minimum balance requirements (fee may change from time to time). For full details regarding eligibility and any fees which may apply please refer to the Personal Service Charges/Statement of Disclosure available at any HSBC Bank Canada branch or online at hsbc.ca

2  HSBC Premier eligibility requires you to have an active HSBC Premier chequing account and maintain a $100,000 balance in combined personal deposits and investments with HSBC Bank Canada and its subsidiaries, some exclusions apply. For full details regarding eligibility and any fees which may apply, please refer to the Personal Service Charges/Statement of Disclosure available at any HSBC Bank Canada branch or online at www.hsbc.ca.

What is a down payment and how much do I need to buy a home?

A mortgage down payment is the amount of money you have saved to purchase your home. You can have as little as 5% of the purchase price amount for a down payment to qualify for a mortgage.

Calculate your mortgage payments

If you are a first-time homebuyer, you may be able to use your RRSP for a down payment.

Learn more

What is amortization and a mortgage term?

Amortization is the estimated number of years it will take to pay off your mortgage. Amortization periods range up to 30 years. The longer your amortization is, the lower your mortgage payments will be, but the higher the total amount of interest you'll pay over the life of the mortgage.

A mortgage term is the length of time you agree to a specific mortgage interest rate and a set payment schedule. A mortgage term can range from as little as 6 months to as long as 10 years. At the end of a term, you can agree to a new interest rate and payment schedule (renew the mortgage), or you can pay off your mortgage in full.

You may have several mortgage terms during the amortization period.

What's the difference between a fixed rate mortgage and a variable rate mortgage?

A fixed rate mortgage allows you to lock in a specific annual interest rate for a certain period of time, known as the term. Terms range from 6 months to 10 years. The interest rate and the payments on the mortgage remain the same for the length of your term. As you make payments and the principal amount is reduced, more of the mortgage payment is applied to the principal and less of the payment is applied to the interest. Because the interest rate does not change throughout the term, you know in advance the amount of interest you will pay and how much principal you will owe at the end of your term.

With a variable rate mortgage, the annual interest rate is based on the Bank's Prime Rate plus or minus a specified percentage. The interest rate changes with the Bank's Prime Rate. Variable mortgage terms range from 3 or 5 years. The regular mortgage payment is a fixed amount. As interest rates fall more of the payment is applied to the principal, and as rates rise, more of the payment is applied to the interest. The regular mortgage payment may be adjusted if the amount of your payment is not enough to cover the interest portion of the payment. Because the interest rate changes, it is not possible to know in advance how much interest you will pay and how much principal you will owe at the end of your term. You can convert a variable rate mortgage into a fixed rate mortgage of the same or longer term at any time during your term without additional cost.

My mortgage is up for renewal, what should I do?

This means that your mortgage term has come to an end and you can renegotiate for a new interest rate, term, and payment schedule. This is also the time to make a larger payment (lump sum payment) without pre-payment penalties on your mortgage to help pay it off sooner.

  • New to HSBC? Call an HSBC mortgage advisor at 1-888-310-4722 or visit your local branch
  • Already an HSBC client? You may be eligible for a preferred rate as an HSBC Premier1 or HSBC Advance2 client.

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Call 1-866-609-4722

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