On April 1, 2024, you may notice changes at your local HSBC branch—and it’s not an April Fool’s prank. HSBC Bank Canada (the Canadian arm of Hongkong and Shanghai Banking Corporation) was approved for sale to the Royal Bank of Canada (RBC) by Deputy Prime Minister and Minister of Finance Chrystia Freeland in December 2023. The acquisition is scheduled to close on March 28, 2024.
RBC will manage most of the transition internally, but HSBC customers will see changes over the coming weeks. Below is a clear guide on what to expect for accounts, cards, mortgages, loans and investments, plus practical steps you can take to make the switch as smooth as possible.
What will happen to HSBC Canada customers?
Most changes will happen automatically, allowing customers to continue banking normally during the transition. Watch for a mailed welcome package titled Welcome to RBC—it contains key details, timelines and contact information. The main changes by product type are summarized below.
Personal banking
What’s happening: RBC will map HSBC accounts to equivalent RBC accounts based on their features. New RBC debit cards will be mailed, and customers without cheque or savings accounts will receive an RBC client card number. Expect to receive cards or client numbers by the end of February 2024.
What to do: Keep using your HSBC card until the migration is complete. Once you receive your RBC card or client number, register for RBC online banking or the mobile app and activate your debit card so you have seamless access after the transition.
Note: Your account history will be migrated to RBC, but you can download records from HSBC beforehand if you want a personal copy. Consult Section 2 of your welcome guide for details.
Credit cards
What’s happening: RBC will select comparable RBC credit cards based on the benefits and features of your HSBC cards and mail those cards by the end of March 2024. Your personal credit limits and outstanding balances will transfer unchanged. Insurance coverages and specific card services provided by HSBC will end and, if applicable, be replaced by RBC’s equivalent offerings.
What to do: Activate your new RBC credit card online as soon as you receive it, but continue carrying your HSBC card until the RBC card is fully active. For more information on card options, see Section 5 of your welcome guide or visit RBC’s HSBC transition pages.
Mortgages and other loans
What’s happening: All HSBC lending products—lines of credit, personal loans and mortgages—will move to RBC at the end of March 2024. Existing mortgage terms (interest rate, payment amount and frequency, amortization, portability and prepayment privileges) will remain unchanged until your current term expires.
What to do: If you have a mortgage with HSBC, you do not need to act before the closing date. If you prefer to switch lenders before your mortgage term ends, be aware you may face a mortgage penalty for refinancing. If you carry creditor insurance on your mortgage, premiums will be recalculated based on your age and balance on the transfer date and will be collected as part of your monthly mortgage payment rather than as a separate bill.
Loans and lines of credit may have different rates or terms after migration—for example, line of credit pricing will be tied to RBC’s prime rate. See Section 3 of your welcome guide for full details.
Investments
What’s happening: Investments held with HSBC are scheduled to migrate to RBC entities by the end of March 2024. Coverage provided by deposit and investment protection schemes, such as the Canada Deposit Insurance Corporation (CDIC) and the Canadian Investor Protection Fund (CIPF), will continue to apply where relevant.
What to do: If you’re comfortable remaining with RBC, no action is required—your accounts and advisor relationships are expected to transfer automatically. For example, mutual funds held with HSBC Investment Funds Canada are expected to move to Royal Mutual Funds or RBC Dominion Securities; brokerage holdings at HSBC InvestDirect should migrate to RBC Direct Investing. Check Section 4 of the welcome guide for specifics on how your investments will be handled.
Tips for managing the transition from HSBC to RBC
Although most transfers are automatic, taking a few proactive steps will reduce friction:
- Log into your HSBC online profile and confirm your contact information is correct—mailing address, email and phone number are especially important.
- Register for RBC digital banking as soon as you receive your RBC client card or number so you can access accounts immediately after migration.
- Carefully read any mail, email or messages from HSBC or RBC and complete any required forms promptly.
- Be vigilant about fraud and scams. Legitimate communications from banks will not ask for passwords or full login credentials by email, phone or text unless you initiated the contact.
Should you switch banks instead?
The transition is a good moment to reassess whether your current bank still meets your needs. You can keep your accounts as they migrate to RBC, or you can open accounts with a different institution at any time. The Financial Consumer Agency of Canada (FCAC) encourages consumers to regularly review their banking products and shop around if better options exist.
You are not required to consolidate all financial products at a single bank. Many customers choose to split chequing, credit cards, mortgages and investments across multiple institutions to get the best rates and features for each product.
How to switch banks
If you decide not to move to RBC, here are practical steps to change banks:
Chequing and savings accounts
To close everyday accounts, visiting a branch can be helpful, though opening a new account is often possible online. RBC has indicated it will allow customers to cancel migrated accounts without penalty within three months after the transition; check the details in your welcome package or speak with customer service.
Credit cards
You can close a credit card at any time if the balance is paid off. Keep in mind that closing long-standing cards can affect your credit score, so evaluate the pros and cons before cancelling. If you want a new card, apply through the issuer’s standard application process.
Mortgages and other loans
Mortgage terms will be honored until maturity. Changing lenders mid-term may trigger penalties or fees. For loans and lines of credit, discuss transfer options and any potential costs with the receiving lender before making a move.
Investments
If you plan to move investments to another firm, act sooner rather than later. RBC has indicated it may waive transfer fees for a limited time during the transition—confirm current offers with your chosen institution and initiate the transfer through them.
RBC and HSBC: What comes next?
For customers who accept the move, the migration should be largely seamless and require minimal effort. Regardless of your decision, this is an opportune time to review your banking relationships, compare product features and ensure your finances are organized in the way that best supports your needs.
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