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With mortgage rates hitting historical lows we are fielding a lot of questions surrounding the advertised 1.99% 5-year fixed mortgage.

While there are many excellent mortgage rates in the market, some of these rates come with requirements that may not fit your mortgage situation or needs…something that is in the fine details of many “too good to be true” advertised rates.

HSBC’s advertisied 1.99% fixed rate mortgage carry’s the requirement of default insurance. This means that clients who make purchases with less than 20% down, who pay the hefty fee for default insurance through CMHC, Canada Guaranty, or Genworth, and meet specific credit criteria may qualify for this mortgage. However, individuals looking to refinance, renew (non-default insured), or purchase with 20% or more down will not qualify for this mortgage.

More individuals than ever are looking into variable rate mortgages for the first time. These mortgages give you access to an excellent rate, the flexibility to lock-in to a fixed term at any point, and a lower breakage cost than fixed rates.

If you have a question regarding your mortgage needs do not hesitate to reach out!