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HSBC cuts 3, 4, 5 year fixed mortgage rates for those with NZ$500,000 mortgages
HSBC has cut its three, four and five year fixed home loan rates and the bank says it now offers the lowest rates in the market across all fixed rate terms from six months to five years. However, customers must have a mortgage worth NZ$500,000 or savings of NZ$100,000 to qualify for a loan.
The three year fixed rate has been cut by 20 basis points to 7.09% from 7.29% , the four year rate by 24 basis points to 7.45% from 7.69% and the five year rate by 34 basis points to 7.65% from 7.99%.
HSBC's fixed term rate cuts follow ones by all the major banks either late last week or early this week.
Despite the fixed rate cuts floating rates remain significantly cheaper with most of the banks offering floating rates under 6%.
See all bank mortgage rates here.
All cuts are effective immediately, HSBC said. However, to be eligible for HSBC's offers, home owners need minimum combined home loans of NZ$500,000, or NZ$100,000 in savings and investments.
“These low rates, together with our already competitive six, 12 and 24 month rates, will give customers the ability to lock in market leading rates for the next six months to five years, providing them with certainty around their mortgage payments in an otherwise volatile market,” HSBC's private client manager Glen Tonks said.
HSBC said it offered customers a dedicated relationship manager, 24/7 banking and no ATM fees anywhere in New Zealand or the world.
Related Topics
HSBC's six month fixed rate is 4.99%, one year rate is 5.74% and two year rate is 6.74%.
74 Comments
Wow, this is huge, is it
Wow, this is huge, is it possible to see 5 year under 7% soon?
Must be a tad longer than 5
Must be a tad longer than 5 years ago, as it's been repaid, but I remember 5 years fixed at 6.5%.
So hoping for 'under 7% soon' is not all that unusual.
Feb Mar 2009 ASB 5.95, I
Feb Mar 2009 ASB 5.95, I managed to grab a 6.5% 5 years on my rentals, got to love the charts, long term rates dropping like a stone
5 years under 7% happend
5 years under 7% happend actually only once in history, and for very short period, unlikely again, but who knows, rates are in free fall again.
"customers must have a
"customers must have a mortgage worth NZ$500,000" My goodness. Who wants such a big mortgage?!
How about everybody who
How about everybody who bought anything since around 2005...?
Want, and have, are two
Want, and have, are two different things.
Mortgages became bragging
Mortgages became bragging points amongst PIs, at least as much as the size of the portfolio.
The bigger your mortgage, the more "serious" you are, just as the bigger your house(s), the more successful and important you were.
Those who signed on the dotted line obviously weren't too concerned about the sheer size of their shiny new mortgage or they wouldn't have signed up for it.
It's only now that the truth is beginning to dawn that on all those genius high-finance gurus that their "investments" may not have been quite as guaranteed as they originally believed.
Sorry but average house price
Sorry but average house price in NZ is still around 350K I believe. Sounds more like PIs and people wanting something flashier than they can afford.
We bought in Dec 08 and have
We bought in Dec 08 and have no mortgage.
So. Does that mean you
So. Does that mean you inherited some money or you are onto your second or third house or you have sold down and paid off your mortgage. What is the point of your comment ?
Try reading the thread - I
Try reading the thread - I am responding to an assertion that everyone who bought anything since 2005 has a $500K mortgage. Seems like a resonable and logical response to me and fits the structure of a normal discussion.
We paid off $300K ourselves and banked a couple hundred thou in capital gains on previous 2 properties.
What a shame you paid so much
What a shame you paid so much though?
Just think, that house is already valued at far less than you paid for it and prices are still falling, with miles to go.
If you'd waited a little while as many of us have been suggesting, you could have paid a lot less for the place.
Ah well, it's only money afterall...
Fair enough I suppose, but we
Fair enough I suppose, but we will need bigger house in the next few years so we still get the benefit of falling house prices as the change over will be less and we did make all those capital gains which we probably shouldn't have so easy come easy go.
Impossible to say what the value of our house is either way until we sell. Similar homes in our wider area have sold for up to $650K and as low as $550K in the last few months. We struck it lucky with some despreate vendors who were selling at one of the lowest points in the market and had 3 deals fall over and saw their sale price drop from $530K to $480K. Still they had brought the place in 2002 for $270K and added a bedrooom since then so they still came out with some dollars.
Oooh WYSIWYG editor. Now all
Oooh WYSIWYG editor. Now all we need is user accounts and ability to edit comments.
Yep. They're coming. We're
Yep. They're coming. We're working hard on these issues of user accounts and the ability to edit comments.
cheers
Bernard
I bought at end of 2008, for
I bought at end of 2008, for $335k, asking price 395+, house on market for almost a year. At the moment can sell it easily for close to 400k. That was great time to buy, plenty of bargains, desperate sellers and low rates, won't happen again anytime soon.
You cannot say it is worth
You cannot say it is worth $400k in this market. It is only worth what someone is willing to pay you for it now and those buyers are getting fewer and far between. Just because the vendor to you wanted $395k plus does not mean it was worth that. When you bought it for $335 that was what it was worth then and valuers will use the $335 sale price to work out their valuations from there on. I think you bought at the top and your place is probably worth less than the $335 and dropping. Agents to a person are saying it has never been so slow since 2002.
Mid 2007 was the top of the
Mid 2007 was the top of the market. End of 2008 was well down on that. I think prices may have rebounded since then,
I actually had an independent
I actually had an independent valuation carried and house valued at 405k recently, as required by bank, to top up loan for some other purposes... similar houses in area selling 400-430k. Seller at the time was desperate to sell, moving overseas or something...
Recently is a long time ago
Recently is a long time ago as in the last three weeks the re market in NZ has gone dead. Your valuation is now historical and valuers must be finding it hard to do their final figures on homes. Agents tell me valuers often ring them for help and advice. That confims valuations are a guess, not a science.
Fixed rates were forced up by
Fixed rates were forced up by RBNZ holding OCR well below the cost of funds to banks. Banks increased the margin to 3% above the swap rate to offset the loss (2%) otherwise incurred on the reset of the floating leg every 90 days.
Further increase s in OCR should see futher reductions in fixed rates.
What I find striking too is
What I find striking too is that this measure seems to be a "debt reward". Those who've bought a reasonably-priced house with the help of a reasonable mortgage most likely won't benefit (probably no savings or not > 100K anyway) but on the other hand, those who either bought lots of properties or used the bank's money to purchase one big flashy house will have preferential interest rates. I really can't see the logic in that. I thought the idea was to encourage people to spend less. What about lower interests for mortgages under 100K? Now that might entice people to try and pay their mortgages off quicker.
Not sure that is in the
Not sure that is in the bank's best interests though Elley. As long as they can keep paying the mortgage, then keep them paying for as long as possible.
Correct. The banks' best
Correct. The banks' best interest is probably to have as many people as possible in as much debt as possible, keeping on paying them as much interest as possible. I just doubt that it coincides with people's best interests (or the way to to go economically, since it is excessive debt that put us in this recession to start with).
Anonymous at 3.21p.m. You are
Anonymous at 3.21p.m. You are wasting your time commenting regarding property on this site. I was barred from this site because I did not speak the word of their God Bernard hickey who would be the most negative person in this country. If you don't talk doom and gloom regarding property you get rubbished by all the "negatives".
It wouldn't matter what good news is reported the jealous negatives will preach some doom and gloom.
Why they keep quoting agents saying how quiet the market is I don't know. Prices are not crashing!! Down 2% a prediction. Wow!! Remember they will bounce back. The sharemarket can go down by that in a day.
If you negatives don't like the country then leave it will then be a more enjoyable place.
There is no good news for
There is no good news for property the man so none to report. Good riddance to you. Your anger has some fear in it I feel. Fear of crashing RE values. If you do your fear is warranted. That has started and is accelerating by the day. Buyers have woken up to you and your agent mates.
You don't look barred to me!
You don't look barred to me!
I was banned last week for
I was banned last week for sticking up for property as an investment. Many don't like it if you stick up for something that works for them. Apparently you have to agree to everything negative about the country or you get rubbished.
I wish you jealous negative people would stop going under ANONYMOUS and give yourself a name so we know which NEGATIVE ANONYMOUS you are!!!!
"I was banned last week for
"I was banned last week for sticking up for property as an investment."
No, you were quite-rightly banned for being an extremely abusive troll.
The Man I have no problem
The Man
I have no problem with people who disagree with me commenting on the site. You'll see many do. President of Property, Chis_j, tribeless and many others.
They really add something to the site by challenging me and others with facts and arguments.
I'd love it if you were able to cite figures and links to back up your arguments.
There's a challenge for you.
Can I also ask nicely that you don't use capital letters or swear words. It's just more pleasant that way.
cheers
Bernard
Thanks Bernard for
Thanks Bernard for replying.
Bernard firstly, I think you banned me because I am positive towards property, and most people aren't.
Everyone is entitled to their opinion but igt is frustrating that so many people on this site continue to knock property per se.
I personally could prove to you that property is the only totally safe investment that you have control over. I agree if you don't do your homework then you can get burnt just as other investments have failed. Yes i have a vested interest in real estate and am biased but it works for me and i consider I know what I am doing.
When you comment I think you generalize far too much. The country is just not Auckland.
Also I think you allow a lot of your other bloggers to abuse us without any comment from yourself.
Contrary to your possible beleifs I would contribute far more to this country of ours than most of your other bloggers.
You and other property
You and other property investment spruikers are unable to comprehend that people are not being "negative" when they report facts you don't like or agree with.
On the other hand, repeatedly shrieking that "property is a great investment and only suckers aren't partaking because everybody knows you can't lose with property!" is not being "positive", it's being deluded and infantile.
Hope this helps.
It's got nothing to do with
It's got nothing to do with 'being positive' towards property. It's just as likely that someone who believes prices will fall is just as 'positive'. Market price direction has nothing to do with 'being positive' Secondly; no one is saying that property is not a good investment, just that, it is not at the moment, depending on where you are; where you bought; what at; what you are doing with it.
Buyin here and now makes no sense. Those who are in financial stress - it makes no sense to hold. Those that can and want to, fine. But for those enetering/ adding to into the game, beware. It's too late in the game to ensure a good outcome, if you do the calculations with the current market factors.
Bernard, why don't you then
Bernard, why don't you then ban Matt from Auckland, Wally and others who constantly abuse others that disagree and never use any arguments really?
I also wish to point out that
I also wish to point out that N.Z. is just not Auckland. Everyone doesn't pay $600 per week rent.
My tenants pay between $285 to 360 per week for very nicely maintained property and gives me rental returns thjat are positively geared.
And NO NO NO NO the properties are not dropping in value. They are worth far more than I paid and NO NO NO I am not selling because they give me a great income and lifestyle.
I am waiting for the NEGATIVES to reply but jealousy will get you absolutely no where. Keep up the good work.
Buy "negatives", you are
Buy "negatives", you are referring to those who happen to post facts, rather than the "positives" such as yourself who post nothing more than the usual bubble wishful-thinking (and oftentimes abuse).
The Man: and bragging leads
The Man:
and bragging leads also to nowhere.
Gertraud. Not bragging
Gertraud. Not bragging whatsoever. Don't need to. It is my way of making a good living and it works.
$360 p.w., positively geared?
$360 p.w., positively geared? Really? I paid excatly that in Regent's Park and the owners asked me if I wanted to buy, in situ. They wanted $525k, no R/E fees etc. That doesn't go anywhere near poitively geared, hence why I rented. It may be 'positively geared' on what they paid in 2003, but not at todays asking price, or anywhere near!
Who is talking about owning a
Who is talking about owning a $525K rental property? Of cause it isn't positively geared at that.!!
Anon at 5.20 p.m. If you are
Anon at 5.20 p.m. If you are renting a $525K home in Regents Park and only paying $360 per week you would be a mug to leave. The property is grossly under rented and the landlord should sell it as I don't think they are cut out to have rental investments!!
Amalgam .Great to see you are
Amalgam
.Great to see you are still around and your normal happy self.
I WISH TO POINT OUT THAT THE PROPERTY POSITIVE PEOPLE ARE THE ONES THAT GET ABUSED.
I retaliated only after we were abused but of course Bernard wouldn't do anything about that because you are on his side with all the negative stuff towards property.
WHO JUST CALLED ME A TROLL? I take that as a token of your affection for property investors.
Just remember the majority of people buy property to live in.
One of your other usernames
One of your other usernames here was "Rich PI Troll", which was very apt.
Amalgam. Rich PI Troll and
Amalgam. Rich PI Troll and myself are different people, why do you think we are one and the same. We aren't.
The Man and his mates talk
The Man and his mates talk about positive gearing but we all know they are really in it just for capital gain and that is going backwards by the day as he and his mates have bought so much it has forced up values beyond any sensible economic fundamentals and therefore we see what has been happening since 2007 and has really accelerated in the last month or so. It is a now a very strong buyers market and values are going to drop heavily from the 2007 prices. Ask any agent or valuer who is open and honest. The Man must live in a rural area where there have been no sales of late and therefore no statistics. But wait for the first sale to take place and see just what a hit that vendor takes. He keeps talking about Christchurch if I recall. If that is where his rentals are then values are dropping significantly as I have real estate friends in that city who are struggling.He will no doubt say they are useless agents like I was. In reality they are generally proprietors of good agencies.
ex. agent. Yes I am in
ex. agent. Yes I am in Christchurch and the market has been slow but with the budget and shocking weather and loss of peoples funds from other forms of investment is it any surprise. As I drive around there are a lot of sold signs up and going by sales stats the market is certainly holding ip extremely well or can you provide evidence to the contrary.
I do not confess to be an expert on the market in other parts of the country but I do know that Christchurch is a lot more conservative than in Auckland and I don't think tyhe investors have mortgaged up to the same extent as Auckland.
Look at the end of the day property investors that have and will be in for the long hall are going to do very well. It is just extremely annoying to read comments from people that really haven't got any expertise just bemoaning socalled property investors forcing the price of property up, which is totally incorrect.
True investors look for a return not just capital gain!!
Property prices is not a major propblem for this country the amount of welfare being paid out is a far bigger worry!!!
"there are a lot of sold
"there are a lot of sold signs up ". So people are selling then? You don't know, and neither do I till the stats. come out, if it's buyers meeting the seller ,or sellers getting-out at whatever price they can.
I know what the properties
I know what the properties have sold for as I have access to the sale prices. The prices are holding up very well for well presented property. The Bank now wish to lend again but there is a problem with first home buyers needing to save for a deposit so some of the lower priced houses in certain areas aren't selling because the investors are more choosy.
By the look of your rental
By the look of your rental range, you have properties at the end of Cranford St or in Mairehau? Those are +75 years old and waiting for the bulldozer. The rent there is line ball if you buy today, assuming you have continuous renters and the damage isn't to high. At some stage, you are right, it all gets down to 'land value' and that is propabbly going to be the first things to give.
No all my properties are
No all my properties are permanent material and everyone has aluminium window frames and very good conditions. None are dozable at all. I also built new apartments that are positively geared as well!!
Put up some figures not
Put up some figures not platitudes the Man. Give us the addresses of your wonderful rentals, when you bought them, what you paid for them,what improvements you have made on them and what that cost and the rents. Then we can assess whether you are for real and your arguments. Until you do that your protection of the PI industry by just using generalities is just hot air.
No response from The Man. He
No response from The Man. He is normally so quick out of the blocks. I don't think he has any properties other than maybe the one he owns. He needs to give at least one good reason why property is not going down even in Christchurch. I don't think he can as there is only bad news these days for him and his mates.
Why would I disclose to you
Why would I disclose to you the address's of the properties and prices paid.
All I can say is that I don't tell lies and I don't care if you don't believe me.
I am not going to disclose personal details except that my returns are 7-11% p.a.
All the "evidence" one way or
All the "evidence" one way or the other is tainted....but looking at the Trademe listings the mart in Canterbury is in the dead zone.
As for PIs having nothing to do with driving up prices, that is hogwash. All PIs who bought in the bubble helped to drive up the prices whether they were in the mart for capital gains or not. Those unable to meet the debt costs are being forced to sell. As the market decline becomes a fact of life, expect the decline to grow worse.
Welfare payments are large, partly because housing costs are high, partly because PIs drove up prices. The fact that property is seriously unaffordable is a major problem. Disposable income is being sucked out by the banks as interest payments on bloated mortgages. That capital is not available for investment in the productive sector...that sector which generates real income.
ex agent always pops up when
ex agent always pops up when The Man appears. Never any other time!
Are they the same person?
Damn, someone should have
Damn, someone should have changed the locks.
I agree with those of you who
I agree with those of you who think property is the safest thing to own when everything else is crashing around us. Money is worthless, shares go up and down, bonds devalue over time.
Most of the old money in NZ was held in land, Queen Street type property, industrial buildings etc. The people who are still wealthy today are those in a variety mortgage free property, even if some of it is vacant you can still get some return on it. People still have to live somewhere so debt free residential is good as is good quality commercial and industrial buildings with government or other strong tenants.
The people who have problems are those with huge mortgages on their properties, they kid themselves they own them but actually the banks own them and the trouble starts when the mortgages can not be serviced.
"bonds devalue over
"bonds devalue over time"...true enuff but if the RBNZ goes ahead with inflation adjusted bonds, plus interest at over 4%, available to Kiwi peasants and not just foreign investors!...then all you need worry about is a drop in the Value of the Kiwi. So, 500grand earning 4% over ten years fully inflation proofed v the cpi(yes I know it is not perfect) would be a tad better than property costing 500grand over ten years when inflation averages over 3% and property rises only 1%pa and provides no cash return during that period. I make the capital difference a 20% loss on property! That's $100000 or am I wrong?...throw in the 4% less tax...say a 3% pa payment(quarterly) and another 30% pops up lifting the difference to 50%...gee that's $250ooo. But wait there's more!...invest the interest over the same period and hey presto property will look pretty sick .
But, Wally. You're forgetting
But, Wally. You're forgetting that it's all about 'leverage'! You get the promise of the capital return on the 80% of OPM that you have used.
Sigh. Let's dial down the
Sigh.
Let's dial down the emotion and the capital letters please people.
Let's have a spirited and good natured debate. But please no swearing or abuse of either other commenters, authors or public figures. Criticism is just fine. Abuse is not. We all know where the line is. Really. We do.
For those arguing I am too broad or generalise or don't back up arguments, here's a few links to data that is specific and hopefully useful.
This is on home loan affordability http://www.interest.co.nz/property/home-loan-affordability
This is a bunch of charts on real estate indicators http://www.interest.co.nz/charts/real%20estate
cheers
Bernard
Bernard. No more capitals. I
Bernard. No more capitals. I didn't know you weren't meant to use them.
Once again I didn't start any abuse it came from some of your older bloggers and many of the anonymous ones which is frustrating as you don't know who is who.
You have to admit though when the property investors is on it makes for a better debate. I t would be pretty boring having all the one side continuously.
Cheers
The Man Many thanks. Yes.
The Man
Many thanks. Yes. When we have property investors on the debate is spirited.
Thanks for leaving out the capitals.
Feel free to use our data and news to make your points (or anyone else's for that matter)
cheers
Bernard
See I am "The Man"
See I am "The Man"
Bernard banned The Man. How
Bernard banned The Man. How come you are back?
I don't think you are the original The Man. You write differently.
The mole amongst us:beware
The mole amongst us:beware the imposter
"Sigh. Let's dial down the
"Sigh.
Let's dial down the emotion and the capital letters please people.
Let's have a spirited and good natured debate. But please no swearing or abuse of either other "
"Please" ??? "Please!!!!
Thats what we use for children 1st time round......this is not the 1st time round, these are suposidly adults who know what curtosy, and basic Westminister rules are.
1 warning, repeat, then ban for a week...2nd warning gone perminent
Simple...basic rule for any forum admin/moderator thats been around for 15 yrs.
Just do it BH...Stop stuffing around and trying to be the nice guy m8.
shall we have some discussion
shall we have some discussion about HSBC cutting fixed interest rates, shall I fix now or wait for interest rates to drop further? Thanks
just received a letter from a
just received a letter from a local RE agent in my letterbox highlighting the fact that building consents are up 19% and then infering we need to get into the market and buy now because things are heating up. The truth is it is CHEAPER to build new, because sections are at reasonable prices and you can get very good building packages. House still need to fall by at least 30% to compete with this. But then who wants to risk buying a second hand leaker when you can buy new.
Alvi, good point, just
Alvi, good point, just don’t relay on Bernard predictions
Approx 449 sales in
Approx 449 sales in Christchurch City in June - figures will be released early next week. That's down on the 601 recorded in June 2009 and not much different to the 479 in June 2008.
Alvi check out
Alvi check out http://www.bnz.co.nz/binaries/w080710.pdf
Tony Alexander says what to do with fixing on page 6. Floating will be over 7% by January 2011 whereas you can now fix for 2 years at 6,99%. Floating will hit 9% so 5 years fixed at 7.65% looks good.
You property bears and bulls may like to click the link on page one to Tony's survey.
I know few people who fixed
I know few people who fixed on long term and still paying at around 10%. But this is very tempting, must say. Will probably come down a bit more
Dont fix yet, theres more to
Dont fix yet, theres more to come.
Now is still time to payoff debt as much as you can, if you can.....if you have one.
Not the time to buy becasue its a bit late to buy.
Grow the equity as fast as you can, thats what everyones doing right now, thats why its so quiet out there...