HSBC has dropped almost all its fixed-rate mortgage offers and now offers the lowest rate for all terms from 6 months through to five years fixed.
The offer comes into effect on Monday, October 10, 2011.
Theses rates apply to the HSBC Premier customers only and require "combined loans of NZ$500,000 and above". Other rates may apply where the loan balances are below that threshhold.
Prior to this move, the HSBC Premier rates were barely the best in the market for each term, despite the high loan requirement.
However, this move down restores the "best-in-market" position for this product.
The HSBC Premier mortgage rate for a fixed six month term is unchanged at 5.49% and that remains the lowest bank rate on offer. The next lowest is 5.75% by both Kiwibank and Westpac.
For one year fixed, the HSBC Premier rate has been reduced by 14bps to 5.65%. TSB has the closest offer at 5.75%.
For two years fixed, the HSBC Premier rate has been reduced by 25bps to 6.10%. SBS now has the closest offer at 6.25% for that term.
For three years fixed, the HSBC Premier rate has fallen 29bps to 6.50%. ASB, Kiwibank, and Westpac are all offering 6.70% for three years as the closest alternative.
For four years fixed, the HSBC Premier rate has fallen 25bps to 7.05%. This is the same as the current ASB offer.
For five years fixed, the HSBC Premier rate has fallen 24bps to 7.35%. ASB currently offers 7.40% for this term.
AMP Home Loans moves down too
At the same time, AMP Home Loans - a product distributed through the AMP network but supplied by Kiwibank - have reduced their two and three year fixed mortgage rates. Their two year rate has fallen 10bps to 6.30% for loans under $200,000 and 6.20% for loans greater than this amount. For three years fixed, the reduction is 20bps to 6.70% for loans under $200,000, and 6.60% for loans above that.
All the current mortgage rate offers are set out here on a comprehensive basis.
You can see how the market has been moving in our updated chart here »
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