Mortgage rates hit a new low, with Canadian bank posting below 1%

HSBC has come out with a variable rate mortgage at 0.99 per cent, which industry watchers believe is the first such posted offer below 1 per cent ever in Canada.

The lender announced a promotion on Friday offering the rate to high-ratio, insured mortgages only — meaning it is only for buyers with less than 20 per cent down, who will then have to pay to insure their mortgage, which protects the lender in case of default. The offer is for a five-year closed term — though the rate, of course, may vary up or down over that time, as it's tied to the bank's prime lending rate.

Original Article Source Credits: CBC News , https://www.cbc.ca/

Article Written By: Pete Evans

Original Article Posted on: Dec 06, 2020

Link to Original Article: https://www.cbc.ca/news/business/mortages-covid-hsbc-1.5828934