HSBC 0,99% 5 YEAR TERM-IS IT A REALLY A GOOD DEAL?
First, the details. Mortgages eligible for the 0.99% rate are high-ratio. That means a down payment of less than 20%, which will inevitably be followed by the added cost of mortgage insurance. Lendesk founder and CEO Alex Conconi, who expressed admiration for several of HSBC’s conventional mortgage products, told Mortgage Broker News that the insurance premiums offered by Canada Mortgage and Housing Corporation currently range between 2.8% and 4% for high ratio mortgages.
Because the rate is variable and based on the vicissitudes of HSBC’s own prime rate, borrowers enticed by the initial savings could find themselves paying more over the term of the loan, especially if Canada’s economic rebound from COVID-19 is hastened by the roll-out of an effective vaccine and the Bank of Canada feels secure in raising its overnight rate, a move not expected until 2022.#SANDI HALPERN # LEASED # SOLD # MORTGAGE # INTEREST RATES