HSBC MasterCard introduces new rewards program to help homeowners

    VANCOUVER, Nov. 13 /CNW/ - HSBC MasterCard(R) has introduced a new way
for homeowners to pay down their mortgage balances more quickly and reduce
interest costs by redeeming their reward points for additional mortgage
payments. Until 31 December 2009, the new HSBC MasterCard rewards program will
allow cardholders to apply up to two per cent of their credit card spending
towards their existing HSBC mortgage, after which they can continue to apply
their reward points to their Mortgage Account at a rate of one per cent.
    Tracy Redies, Executive Vice President, Personal Financial Services and
Wealth Management, HSBC Bank Canada, said: "One of the most consistent
financial goals of many Canadians is to pay off their home and become
mortgage-free faster. The new HSBC MasterCard Mortgage Account Contribution
Reward gives homeowners an opportunity to move in that direction by allowing
them to convert their ongoing everyday spending into additional payments on
their mortgage."
    The HSBC MasterCard Mortgage Account Contribution Reward will allow
customers to redeem points at a cash equivalent rate of two per cent of their
total eligible dollars spent on the card, which can be applied directly to
their HSBC mortgage account balance, reducing the outstanding principal. The
first $200 contribution will take effect once cardholders reach the 10,000
reward points level. Additional contributions will be paid at a rate of $100
for every subsequent 5,000 points they accumulate. The two per cent program
will be in effect until 31 December 2009 and will continue thereafter at a
rate of one per cent.
    The compounding value of using rewards points to reduce a mortgage
balance provides HSBC customers with real value over the life of the mortgage.
For example, a customer with a $250,000 mortgage who spends $20,000 per year
($1,666 per month) on their HSBC MasterCard would reduce the mortgage balance
by $5,000, saving $8,144 in interest charges, and pay off the mortgage 7
months earlier.(*)
    Complete details of the HSBC MasterCard Mortgage Account Reward Program
and other reward programs offered by HSBC can be found at any HSBC Bank Canada
branch or by visiting www.hsbc.ca.

    HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 180
offices and is the leading international bank in Canada. With around 9,500
offices in 85 countries and territories and assets of US$2,547 billion at 30
June 2008, the HSBC Group is one of the world's largest banking and financial
services organizations.(R) MasterCard is a registered trademark of MasterCard International
    Incorporated. Used pursuant to license.

    (*) Assumes a 6.85% interest rate, monthly mortgage payments, a 25 year
    amortization period and annual conversion of reward points for the
    life of the mortgage.

For further information: Media enquiries: Ernest Yee, Vice President,
Corporate Affairs, HSBC Bank Canada, [phone]; Michael Edmonds, Senior
Manager, Public Affairs, HSBC Bank Canada, [phone]