Buying Your Next Property

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Buying Your Next Property

Buying your next property

Moving up or moving on

Selling your home to buy another one is not something that most people do often enough to become experts at the ins and outs of moving up or moving on. That’s why your HSBC Mortgage Specialist is here to help.

Some homeowners move up to a more expensive property while others are in the process of downsizing life and expenses. Either way, an HSBC Mortgage Specialist can recommend the most effective financial strategy based on a number of critical factors, including:

The type of mortgage you have (open or closed)
Your current interest rate
The time remaining on your current mortgage term
The amount of additional cash you may need to buy your next home

An HSBC mortgage specialist can contact your current financial institution and make all the arrangements for you.

Select from any of these convenient options.
Your options	Advantages
Pay off your current mortgage and negotiate a new one	If interest rates have dropped since you last negotiated your mortgage, it may be advantageous to pay off your outstanding balance with the proceeds from your sale and create a new HSBC mortgage with more cost-effective features and rate options.
Pay off your current mortgage and combine a new one with a Home Equity Line of Credit	Combining a mortgage with a home equity line of credit results in a combination of predictable payments and financial flexibility. This can be a good option if you have plans to renovate or upgrade your new home.
Pay off your current mortgage and switch to a Home Equity Line of Credit	Use your home equity to help you achieve important goals, such as home renovation, education or debt consolidation. An HSBC Equity Power Mortgage lets you access up to 80% of the value of your home. Under an HSBC Equity Power Mortgage, you can access credit in flexible and affordable ways such as through a Home Equity Line of Credit.

Select from any of these convenient options.
Your options	Pay off your current mortgage and negotiate a new one
Advantages	If interest rates have dropped since you last negotiated your mortgage, it may be advantageous to pay off your outstanding balance with the proceeds from your sale and create a new HSBC mortgage with more cost-effective features and rate options.

Your options	Pay off your current mortgage and combine a new one with a Home Equity Line of Credit
Advantages	Combining a mortgage with a home equity line of credit results in a combination of predictable payments and financial flexibility. This can be a good option if you have plans to renovate or upgrade your new home.

Your options	Pay off your current mortgage and switch to a Home Equity Line of Credit
Advantages	Use your home equity to help you achieve important goals, such as home renovation, education or debt consolidation. An HSBC Equity Power Mortgage lets you access up to 80% of the value of your home. Under an HSBC Equity Power Mortgage, you can access credit in flexible and affordable ways such as through a Home Equity Line of Credit.

There are many ways to finance an investment property in Canada. An HSBC Mortgage Specialist can help you establish your best approach based on how long you plan to own the property, your cash flow needs and the amount of capital your are prepared to invest up-front.

Short-term strategies, such as “house-flipping”, differ from longer-term investments. So, it’s important to develop a financial plan that includes the most effective financing option.

Assuming that you are investing for the long-term, you have options.
A conventional mortgage	A Home Equity Line of Credit
Assigning a conventional mortgage to your investment property is common. Based on your down payment, the income from the property should cover the Principal and Interest payments and provide a contingency fund.	If you have sufficient equity in your primary residence, a Home Equity Line of Credit can be a flexible and effective way to combine all of your debt into one package. If you anticipate the ability to make additional and lump-sum payments, this can be a very profitable approach.

Assuming that you are investing for the long-term, you have options.
A conventional mortgage	Assigning a conventional mortgage to your investment property is common. Based on your down payment, the income from the property should cover the Principal and Interest payments and provide a contingency fund.
A Home Equity Line of Credit	If you have sufficient equity in your primary residence, a Home Equity Line of Credit can be a flexible and effective way to combine all of your debt into one package. If you anticipate the ability to make additional and lump-sum payments, this can be a very profitable approach.

The amount of your down payment is a critical factor in establishing a long-term and reliable return on your investment. Work with your Realtor and your HSBC mortgage specialist to determine the most cost-effective down payment amount based on the value of the property and its income potential. More might not always be better.

Vacation properties can easily turn into family legacies and provide years of enjoyment for generations to come. There are many factors to consider when you choose a long-term financing solution. For example:

Do you plan to pass this property to family members as part of your estate?
Will you receive any income from the property by renting it from time to time?
How quickly would you like to pay it off?

An HSBC Mortgage Specialist knows how to help you determine the best long-term solution for you and your family.

A HSBC Mortgage could be just what you need.

2-year fixed closed term

5.74% (5.82% APR)^*

5-year fixed closed term

4.99% (5.02% APR)^*

Today's best rates

Call 1-866-609-4722

Lines are open Mon-Fri from 6am-6pm PT

How to apply

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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In a few simple steps, learn how much of a mortgage you may qualify for with the HSBC Mortgage Prequalification Calculator.

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Lines are open Mon-Fri from 6am-6pm PT

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Rates are subject to change without notice and are applicable to First Mortgages only. For information and to confirm most recent rates, please contact any HSBC branch. Some restrictions apply.

* The annual percentage rate (APR) is based on a $200,000 mortgage for the applicable term assuming a property valuation fee of $300. APR includes all interest and some non-interest charges associated with the mortgage. If there are no non-interest charges, the annual interest rate and APR will be the same. Rate is only available for residential mortgages, a higher interest rate may apply for non-owner-occupied properties, amortizations greater than 25 years, and exceptions to HSBC's standard lending guidelines. Applications are subject to credit approval.

Get prequalified for a mortgage today. Learn how much of a mortgage you may qualify for.

The perfect home is waiting for you.