More Banks Enter the Variable-rate Fray

“Rate war” is a cliché in this business. But that’s exactly what we’ve now got in the variable-rate mortgage market.

BMO started it all with its record-setting prime – 1.00% offer. TD then promptly matched.

Now we’re hearing from Scotiabank branch sources that it’s offering prime – 1.00% as well — but only for new client applications and not for refinances (that sucks).

The Big News 

HSBC isn’t content to match. It’s counter-attacking with an walloping prime – 1.06% special, effective tomorrow.

That’s the biggest widely advertised variable-rate discount ever from a large bank.

But there’s more. HSBC is also:

• giving away $1,000 cashback on eligible 5-year fixed and variable mortgages
  • Not available on refis, or to existing HSBC customers
  • Here are the full terms
• promoting a “killer” (HSBC’s words) rate of Prime (3.45%) + 0% on HELOCs
  • That’s Canada’s best HELOC rate
  • Borrowers must apply by July 31 to get it
• dropping its insured 5-year fixed rate to 3.09%
  • Once again, this undercuts all the Big 6 banks’ published rates
  • It’s not available to existing customers
  • HSBC’s 5-year uninsured rate rises from 3.19% to 3.34% (providing its competitors some relief).

If you’re waiting for a major bank to match all of this, don’t wait too long.

Insured Rates are Even Lower

Keep in mind, there’s a slew of variable rate options below 2.39% for those needing a default-insured mortgage or those switching their mortgage to a new lender.

Here are all the current best variable rates in Canada (make sure to enter your correct home value and mortgage amount as rates vary by loan-to-value ratio).