HSBC Bank Canada has been purchased by the Royal Bank of Canada. The information on this page is no longer being updated. For historical reference only, this page will remain accessible; however, it will not receive updates moving forward.
HSBC Mortgage Rates & Reviews
HSBC Background
HSBC operates worldwide in over 65 countries, and is the 6th largest bank in the world in terms of assets. HSBC was the largest foreign bank operating in Canada. HSBC was named after its founding bank, the Hong Kong and Shanghai Banking Corporation. The founder, Thomas Sutherland, founded the bank in 1865 when he recognized the need for increased banking services in Hong Kong and China to facilitate the growing trade between China, India, and Europe.
In Canada, HSBC had its headquarters in Vancouver, with branch locations and offices across most major cities in Canada. HSBC offered a wide ranging set of products in Canada, including HSBC mortgages, credit cards, lines of credit, bank accounts, and wealth management products. HSBC currently has over 232,000 employees worldwide, and had over 4,000 employees in Canada, with over 54 million customers worldwide.
HSBC Acquisition by RBC
HSBC Bank Canada was acquired by RBC with the sale completed on March 28, 2024. This purchase moved 4,500 HSBC Canada employees and 780,000 HSBC Canada clients over to RBC, with HSBC Canada branches and offices becoming RBC locations. HSBC clients were able to continue accessing their accounts and services through RBC after the acquisition, with accounts being migrated to RBC and its subsidiaries.
HSBC Prime Rate
HSBC's prime rate was used as the basis for many lending products, including HSBC mortgages, lines of credit, credit cards, and HELOCs. The way that the prime rate is used to get the final interest rate on a product is by combining a positive or negative spread with the prime rate. This results in a lending product either having an interest rate higher or lower than the prime rate, depending on its perceived risk to the bank.
The HSBC prime rate below was the last available rate before HSBC was acquired by RBC in March 2024.
HSBC Canada History
HSBC Mortgage Break Penalty
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
Difference in interest payable between the amount of interest owed from the time of payment to maturity, using an interest rate that is your current mortgage rate less HSBC’s current posted rate for a comparable remaining term, less any rate discount that you received.
To see how much you can expect to pay in prepayment charges, utilize the HSBC mortgage penalty calculator below:
HSBC Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Who is your current mortgage lender?
What is your lender's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
HSBC HELOCs
An HSBC home equity line of credit (HELOC) allows you to borrow money from the equity portion of your home without needing you to refinance. Your home equity is calculated as the fair market value of your property minus the outstanding mortgage balance you have on your home. Since an HSBC HELOC is backed by your home, it can help you consolidate any outstanding debt you have with the low interest rate it offers. It can also be a good way to fund a home renovation, education costs, or as an emergency source of funds. With a HELOC, You can borrow as much or as little as you like up to your credit limit, and the interest is only charged on the amount that you borrow. To calculate how much you can borrow from your HELOC, use WOWA’s Home Equity Line of Credit Calculator.
Benefits of a HSBC HELOC
Lower interest rates because it is secured by your home |
Allows you to easily access your home equity without needing to refinance. |
| Borrow as much or as little as you choose, and only pay interest on your outstanding balance. |
HSBC Equity Power Mortgage
An HSBC Equity Power Mortgage is a readvanceable mortgage product, meaning that you will automatically have access to a home equity line of credit with your mortgage. With this product, you will be able to access up to 80% of your home equity, and as you pay down your HSBC mortgage and grow your equity, your HELOC limit will increase. An HSBC Equity Power Mortgage also gives you the flexibility of blending long and short payment terms and utilizing both variable and fixed interest rates. The biggest benefit of this product however is not needing to register for a HELOC, and instead getting a HELOC approved alongside your mortgage. If you were to register for a new HELOC, it would mean added time and paperwork, along with a home appraisal and potential legal fees.
HSBC Mortgage Features
HSBC mortgage creditor insurance
As a way to give you peace of mind in case of anything happening while you have your mortgage, HSBC offers mortgage life and mortgage disability insurance. Mortgage life will cover your mortgage balance in full or partially if you are to pass away, with coverage available for mortgage amounts up to $750,000. Mortgage disability insurance will act similarly, covering you if you become disabled from an illness or injury, providing you with up to $4000 a month in payments for up to 24 months. Both coverages will be available for you to keep until your 70 years old, until your mortgage is paid off, or until you cancel coverage. For both types of coverage, your monthly premiums will be based on your age, coverage amount, and how many people you cover, and your monthly premiums will not increase.
Change your HSBC payment frequency
HSBC offers multiple payment frequencies to choose from, including: weekly, bi-weekly, semi-monthly, and monthly. The more frequently you choose to make payments on your HSBC mortgage, the faster it will be to pay it down. This is because you are reducing your mortgage balance more often, leaving smaller mortgage balances for interest to accrue on.
HSBC prepayment options
HSBC offers three ways to pay down your mortgage faster and prepay more of your mortgage, up to the maximum prepayment allowance of 20% of your original mortgage balance. A prepayment privilege of 20% is more generous than many other Canadian mortgage lenders. But there are other mortgages like RFA mortgage and Quest mortgage that match this prepayment privilege. This includes:
- Make a lump sum payment: You are able to make a lump sum payment of up to 20% of your original mortgage balance on your mortgage anniversary each year,
- Extra mortgage payments: On every payment date, you are able to make a mortgage payment up to 100% of your normal payments,
- Increase your mortgage payment: Once per year, you are able to increase your monthly mortgage payment permanently by 20% for 12 months.
Contacting HSBC & HSBC Locations
With branches across major cities in Canada, HSBC offered the ability to meet with a mortgage representative in a branch, or to start the mortgage process online. For general inquiries, you were able to speak with an HSBC employee at 1-888-310-4722. Now, all inquiries are through RBC. The following shows a breakdown of how many locations HSBC had in the following cities:
| City | Number of Locations | Main Location(s) |
|---|---|---|
| Toronto | 20+ | Toronto Financial District: 70 York Street & 111 Yonge Street |
| Vancouver | 30+ | Coal Harbour: 999 West Hastings Street Central Vancouver: 885 West Georgia Street |
| Calgary | 9 | Downtown Calgary: 407-8th Avenue Southwest |
| Montreal | 5 | Downtown Montreal: 2001 McGill College Avenue |
| Edmonton | 5 | Downtown Edmonton: 10250-101st Street |
| Ottawa | 1 | Downtown Ottawa: 131 Queen Street |
| Hamilton | 1 | Downtown Hamilton: 40 King Street East |
| Quebec City | 1 | Sainte-Foy: 2795 Boulevard Laurier |
| London (Ontario) | 1 | Downtown London: 285 King Street |
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.