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.
Selling one home to buy another
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.
|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.|
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.|
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.|
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.|
Investment properties in Canada
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
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 in Canada
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.
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* The annual percentage rate (APR) is based on a $200,000 mortgage for the applicable term assuming a property valuation fee of $300. APR means the cost of borrowing for a loan expressed as an interest rate. It 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. Applications are subject to credit review and approval. This rate is only available for Residential (Conventional) and Equity Power Mortgages, a higher interest rate may apply in circumstances, but not limited to the following: the property is not owner-occupied, the amortization is greater than 25 years, and the debt service ratios exceed HSBC’s standard lending guidelines.
** The variable rate is equal to HSBC Prime Rate - 1.01%. The rate will change as HSBC's Prime Rate changes. Rates are subject to change without notice. For information and to confirm most recent rates, please contact any HSBC branch. Mortgage Rates above are applicable to First Mortgages only. Some restrictions apply