Last Updated on October 24, 2023 by Dalia Barsoum
As a real estate investor, it is important to know who the key lending partners in the market are, what solutions they offer you as a real estate investor, and at what point to use their solutions for your portfolio.
Today, I wanted to share with you a lender update that you will benefit from as an investor, especially during this period of higher interest rates.
HSBC, one of Canada’s largest banks, is now a player in the mortgage broker channel and is available to a few select brokers, including Streetwise Mortgages.
As a Lender, HSBC is worth taking note of as a real estate investor for various reasons:
1. They are an investor-friendly lender who offers lines of credit on rental properties. They also offer rentals in holding companies (without a line of credit).
2. They are ok with investors with a larger portfolio of up to 12 properties and they will finance up to 5 of your rentals for you.
3. They use 80% of the rental income whereas some lenders use 50%. This adds more income to your mortgage application and can help with qualification.
4. If you have a secured line of credit with another financial institution, they will factor only the balance you have currently used and not the entire limit on the line which many lenders account for in their calculations regardless of whether or not you have used the line. This is a huge advantage when it comes to what you qualify for on your mortgage approvals.
5. HSBC is known for its low rates. They are one of the lowest-rate players on the street for both primary residences and rental property financing. Depending on the rate you currently have, this can help you lower your monthly mortgage payment and save on interest costs.
6. HSBC’s variable rate has a static payment meaning that even if the prime increases your payment will remain the same*. This will give you the peace of mind that your payment will stay stable for a while and when prime goes down – which the market foresees happening in 2024 – the interest you pay will go down along with prime.
Right now, HSBC is also offering up to $5000 cash-back as a bonus for investors looking to switch their mortgage over to HSBC as long as the application is submitted for approval before February 24th, 2023, and funds are within 120 days.
If you wish to explore lower interest rate options on your primary residence or rental properties to reduce cash flow pressures or to stabilize your monthly payment while positioning yourself to benefit from a future rate reduction, HSBC can be a great alternative for you.
To explore this option and how it may fit with your financial goals, book a short discovery call with one of our Senior Advisors at Streetwise Mortgages.
Email us at Info@StreetwiseMortgages.com or visit our website at www.streetwisemortgages.com to get started today!
* As prime increases, the monthly payment stays fixed while more of the payment goes towards interest versus principal until the trigger rate is reached,
at which point the payment may be adjusted.
Dalia Barsoum is the founder of Streetwise Wealth, a boutique real estate wealth advisory firm, and Streetwise Mortgages, a multi-award-winning brokerage specializing in income property financing. Streetwise Mortgages is known as Canada's #1 small markets broker (AKA rental markets) as ranked by Canadian Mortgage Professionals.
The team at Streetwise Mortgages has funded over 1 billion dollars of mortgage volume and over 2700 mortgage transactions ranging from residential, multi-family, mixed-use, and other construction projects.
Dalia is the best-selling author of Canadian Investor Financing: 7 Secrets to Getting All The Money You Want, a columnist for Canadian Real Estate Wealth magazine and has been recognized as a Global 100 mortgage professional, one of Canada’s top 10 brokers, and a woman of influence.
Through strategic real estate financing advice, sophisticated deal structuring solutions, and access to an understanding of all the money tools and capital structures investors use to grow (private money, traditional mortgages, alternative mortgages, GP/LP structures, corporate capital structures, and joint ventures), Dalia and her team have helped thousands of Canadians kick start their real estate investment journey and take their portfolios to the next level while managing risk.
