HSBC Mortgage Calculator of February 2023

What is the HSBC Bank Canada mortgage calculator?

HSBC Bank Canada offers mortgages with both an open and a closed term and at both fixed and variable rates. Fixed-rate open mortgages are available for a 6-month and 1-year term, with the APRs of 8.25% and 6.85%, respectively. The APRs for fixed-rate closed mortgages range from 5.94% to 6.49%, depending on the term length. Variable-rate open mortgages are available for a 3-year term at an 8.75% APR. Variable-rate closed mortgages are available for a 6-month term at a 5.65% APR.

You can start your mortgage application by getting pre-qualified through the HSBC Bank Canada website. You will receive further instructions from the bank’s financial advisors upon getting pre-qualified.

To get an idea of how much you will need to pay for your mortgage monthly, you can use the mortgage payment calculator. Just enter the values for your APR, the mortgage amount, the amortization period, and the term length, and you will see the estimated amount for your monthly payment.

Attention! All mortgage and other loan calculators are for informational purposes only and provide general information.

The bank offers a wide range of products and services like online banking accounts, mobile banking, mortgages, home equity line of credit (HELOC), lines of credit, personal loans, investing and retirement, credit cards, and special offers for people who are new to Canada, etc.

There is a range of HSBC mortgages to choose from:

• HSBC Traditional (Residential) Mortgage allows home buyers to pay off the mortgage faster with flexible early payment options. For example, you may prepay up to 20% of the original mortgage or raise the payment amount to 20% each year.

How much you can prepay depends on the type of your mortgage. You can pay a part or all of your loan at any time without penalty if it's an open mortgage. You may make prepayments with a set amount and date if you hold a Variable Closed mortgage or a Fixed Closed mortgage. However, a year's total extra and increased repayments cannot be more than 20% of the original capital amount. If you have a Variable Closed mortgage after the first three years, it becomes an open term with the conditions applied.

Choose either fixed rate mortgages or variable rate mortgages. With a fixed rate, you may "lock" the preferable rate for the term and always know the amount of your payment. This becomes a peace of mind for most homeowners, who often choose fixed-rate mortgages to apply.

Reference! Rates vary from 4.09% to 5.84%, depending on the prime rate, and may fluctuate: save money or cost more from time to time.

The amortization period is up to 30 years. After that, payment frequency varies (monthly — weekly). Mortgage rates depend on the mortgage type, amortization period (higher if it's more than the average 25 years), your total debt service (TDS) ratio, and Gross debt service (GDS) ratio.

The GDS ratio is computed by dividing your annual housing costs by your gross annual income. The TDS ratio is calculated by dividing your total housing-related yearly and debt expenses by your gross annual income. They should not exceed HSBC’s standard lending guidelines.

• HSBC Equity Power Mortgage gives you access to up to 80% of your home equity for renovation, traveling, or major purchases. You may consolidate your debts into one with a lower rate reducing the overall interest cost. Combine fixed and variable rates, term, amortization periods, and payment options to make your borrowing more affordable and reduce the interest rate.

• HSBC Home Equity Line of Credit gives you ongoing access to your home equity money. You may use it as much as you want and pay interest only on the amount you use. Home equity is the difference between your home's appraised value and your mortgage's outstanding balance. Apply for a HELOC at the rate of 4.55% (HSBC Prime Rate - 0.15%). It is based on the fluctuating prime rate and may save your money or cost more over time. In addition, you may use a HELOC to consolidate your debts into one large loan with more preferable conditions due to lower rates.

• HSBC Premier mortgage and HSBC Advance mortgage offers are available if you are eligible. When you are a Premier HSBC customer, you and your family may use the exclusive benefits: competitive rates, terms, and advice of the Relationship Manager to find the most suitable mortgage deal.

There are four options to qualify for a Premier with HSBC Bank Canada:

• maintain deposits and investments of $100,000;
• hold a residential mortgage with an original amount over $500,000;
• have income deposits of $6,500 within a month plus confirmation over $100,000 in assets under management in Canada;
• be a Premier in another country.

HSBC Advance requires you to maintain combined personal deposits and investments of $5,000 or more; hold a personal residential mortgage with an original amount of $150,000 or more.

Suppose you already have Premier or Advance banking accounts. In that case, you may just contact the HSBC Relationship manager to review and apply for a preferable mortgage deal and get other necessary services.

Attention! All products are subject to terms and conditions. A monthly fee will be charged if you do not meet at least one of the conditions above. For further information or support, contact HSBC.

You may pre-qualify online or contact HSBC to get assistance from the specialist to find the best mortgage rates. There may be other mortgages as options are changing.

HSBC Bank Canada has special services for people new to Canada with an international lifestyle. You may keep the credit history established in your country to make your relocation to Canada easier. In addition, you have an opportunity to set up your Canadian finances before you move or after you arrive. Choose variable or fixed rate mortgage deals with the lowest rates.

HSBC Mortgage calculators you may use at the bank's website include:

• The mortgage payment calculator is designed to calculate your monthly payment;
• The mortgage affordability calculator estimates how much you can borrow;
• The mortgage prepayment charge calculator is made to calculate the prepayment charge you must make if you want to pay off all of your outstanding mortgage balance before the maturity date;
• The creditor insurance calculator estimates your insurance premium and payment according to the chosen insurance coverage.

All calculators provide an approximate estimation for illustrative purposes only. In addition, all HSBC mortgage options are subject to terms and conditions and may not be available. To find out the specific data, contact HSBC.

HSBC Bank Canada mortgage calculators

There are several online mortgage calculator tools on the HSBC Bank Canada website:

1. Mortgage affordability calculator to determine how much you can afford to borrow given your annual household income, the APR, amortization period, and your monthly expenses.
2. Mortgage payment calculator to estimate your monthly payments given the APR, mortgage amount, amortization period, and the term length.
3. Mortgage prepayment charge calculator to identify penalties for paying off your mortgage before the maturity date.
4. Mortgage Life and Disability coverage calculator to estimate the coverage you can count on based on the selected insurance option.

Why do you need the HSBC Bank Canada mortgage calculator?

1. Mortgage calculators assist you in choosing the preferable mortgage which suits your financial goals. You may find the combination of rate and term and choose the best HSBC mortgage deal available to borrow. Pre-qualification and pre-approval are available online.
2. Planning your future and budget requires knowing which monthly repayments you can make. There may be variants of repayment frequency and amount of prepayments you want to make to settle your loans early. For example, depending on a mortgage deal, you could make additional payments up to 20% of your mortgage balance or pay any amount at any time.
3. The minimum down payment is 5% of your property value. But if borrowers' down payment is less than 20%, mortgages are considered high-ratio mortgages, and default mortgage insurance is obligatory.
4. When you have a down payment of 20%, you're borrowing 80% of the property value. Therefore, the loan-to-value ratio is 80%. A loan to buy is one of the main criteria lenders consider when deciding to approve you for a home purchase or refinance.
5. If a borrower defaults, his debt is secured by the insurance, and lender risks are covered. That's why lenders usually provide insured mortgages with lower interest rates.
6. Your down payment amount affects the mortgage amount and purchase price and may have an impact on the rate.
7. Mortgage payment calculators help consider different ways of paying off home loans and reduce the interest accrued during the mortgage term: change rates, amortization period, term, and overall cost review.
8. You may suggest that you save money on interest costs and repay the mortgage faster with a shorter amortization period.
9. Make sure you can afford monthly repayments before applying or pre-qualify online.
10. Mortgage prepayment charge calculators assist in calculating the cost of the fast repayment of closed home loans. It could be taught to consider all the details, terms, and rates. You may choose different interest rates and look at how the cost changes.
11. Creditor insurance coverage, premium, and payments vary. You may rely on the calculator to determine which creditor insurance meets your needs and requirements. It will show you the cost of your potential insurance.
12. With the mortgage payment calculator, you can get an idea of what your regular mortgage payments will look like based on the APR, mortgage amount, amortization period, and mortgage term. These calculations will help you plan your household budget accordingly.

How to use the HSBC Bank Canada mortgage calculator?

Let’s assume your mortgage amount is $180,000, the APR is 6.20%, the amortization period is 25 years, and the mortgage term is five years. To calculate your monthly mortgage payment, enter these values into the designated fields in the mortgage payment calculator. Once you do, you will get a monthly mortgage payment of $1,173.14.

How to use the HSBC mortgage calculators?

Visit the HSBC website. Click "Borrowing" on the side menu and choose "Mortgage calculators." You will open a new screen with all tools to use and a lot of information to overview.

Open the Mortgage payment calculator

• Fill out the interest rate and total mortgage amount, and choose the amortization period and length of the term.
• Get a mortgage balance at the end of the term and monthly payments.
• You may choose the next step and click the "Get pre-qualified" or "Book an appointment."
• Schedule your appointment: write the theme, preferred branch, date, and time. If you have an online banking account, it will be enough to log on to select a contact at your preferred unit.

Open the Mortgage borrowing calculator

1. Input your annual household income (before taxes), mortgage interest rate, amortization period, and monthly expenses. These include monthly loan payments, car payments, condo fees, heating, property taxes, or other debt repayments.
2. Review monthly repayment and the total amount you can borrow.
3. You may choose the next step and click "Start pre-approval application" available online or "Book an appointment."

Open the Mortgage prepayment charge calculator

1. To access your outstanding mortgage balance, log into Internet Banking and view the Account Summary page or call the telephone number 1-888-310-HSBC (4722).
2. Choose your mortgage type: fixed or variable rate closed mortgage. Next, enter the prepayment amount, the start date of your current mortgage term, maturity date, current posted rate, annual interest rate, and discount rate.
3. Get the mortgage prepayment charge and all calculations available to edit. You may change any values to understand how much it will cost to make a prepayment on your current borrowing with your mortgage provider.

Open the Creditor insurance calculator

1. Choose the loan type (mortgage, line of credit, personal or demand loan), your age rate, type of coverage, place of residence, amount of borrowing, payment, and frequency (monthly — weekly).
2. Get the premium amount and combined payment. You may see the table of insurance coverage premiums and payments.
3. You will be advised to book an appointment or call for further assistance with insurance services.

How to compare HSBC Bank Canada mortgages using a mortgage calculator?

You can compare various mortgage options in terms of regular payments by adjusting the values you enter into the mortgage payment calculator. This way, you can figure out an option that works best for your monthly budget.