Statement of Disclosures
Information on Mortgage Security
HSBC has signed a Commitment to Provide Information on Mortgage Security. We provide this information so that you have enough information to understand the implications of choosing a Residential Mortgage (conventional charge mortgage) or an Equity Power Mortgage (collateral charge mortgage).
A Residential Mortgage is a conventional (standard) charge mortgage which only secures your mortgage loan. A Residential Mortgage has the following advantages and disadvantages:
- If you wish to borrow additional funds, you will likely need to pay legal and other fees to discharge the Residential Mortgage and register a new mortgage.
- Other financial institutions will likely accept the transfer of your Residential Mortgage so that you can avoid paying legal and other fees to discharge your Residential Mortgage and register a new mortgage.
- We will discharge your Residential Mortgage when you pay off your mortgage loan and request a discharge.
An Equity Power Mortgage is a collateral charge mortgage which, if we agree, you can use to secure other loans, now or in the future. An Equity Power Mortgage has the following advantages and disadvantages:
- You will not need to register a new mortgage and pay associated legal and other fees if the total amount of the loans is equal to or less than the amount of the Equity Power Mortgage.
- Other financial institutions may not accept the transfer of your Equity Power Mortgage. You will likely need to pay legal and other fees to discharge your Equity Power Mortgage and register a new mortgage with the other financial institution.
- If you pay off your mortgage loan, we will not discharge the Equity Power Mortgage as it may secure other loans, existing or in the future. We will discharge the Equity Power Mortgage if you have repaid all loans secured by it and request a discharge.
Additional information can be found on the Canadian Bankers Association and Financial Consumer Agency of Canada websites.
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