HSBC is running a special rate promotion until November 17, 2007. For 5-year variable mortgages their rate is prime minus 1.00%.
This is much better than you’ll find almost anywhere else. But, you’ll need 20% down and decent credit. To qualify you must apply at the branch.
Mel, does HSBC have a readvancable product?
Hi FT, Yes they do. It’s called the Equity Power Mortgage, but I’m not a big fan of it’s fees and limitations on readvances.
Can this new variable rate be implemented with their Equity Power Mortgage?
Yes I believe it can…
HSBC will actually LOSE a lot of business for this from brokers. You simply don’t undercut your referral sources and expect them to forget about it. Other things being equal I and other brokers will go out of our way to never send HSBC client referrals again.
Hey Paul, so much for the clients interests I guess?
Read my post please. I said “other things being equal.” That means if another lender has an equally good product I would avoid HSBC. The clients interests are always the priority Traciatim. That is not the point.
Besides the $25/readvance, do they have any other fees?
Paul I’d agree. If a broker brings a client to HSBC and HSBC tells the client they can only get P-1% if they ditch their broker that is not exactly ethical of HSBC IMO.
Dale, I agree there. If the client approached the broker, the broker found the best option was an HSBC product, then the HSBC contacted the client and offered a better deal; That’s underhanded and low.
If the client approached both the broker and HSBC in a rate shopping scenario and the better deal was through HSBC directly, that’s just business.
Sorry Paul, my mistake, I misread your post.
FT, HSBC entails the typical appraisal and legal fees as well. If you’re transferring from another lender, and go through a mortgage planner, they will rebate you $500 on these fees.
Rob, Co-Ed. CMT
I think Paul and Dale have a point. It is bad business for a lender to put referral sources in awkward positions with clients. Frankly, I’ve never liked HSBC to begin with because they’re turtle-slow with their underwriting. This affront to the brokerage channel is just icing on the cake.
HSBC made a big big mistake in how they handled this. I know two brokers who used to deal with HSBC regularly that have now shifted their business elsewhere. It was just a stupid move.
Has anyone else had a horrible experience with HSBC lately? Their service and turnaround times have been simply awful IMO and they are completely non-repentant about it. It will definitely make me think twice before jumping on any of their rate specials again.
I am a client of HSBC with several mortgages on a mix of residential and income properties. I aksed for a line of credit based on the unised part of my contract which did not even need appraisal or legal service and they asked me for a $2,000 handling fee. This is a first for me.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.