HSBC has cut its 1 year mortgage rate by by 45 basis points to 5.79% ahead of the Reserve Bank's Monetary Policy Statement on Thursday, where the central bank is expected to cut the Official Cash Rate (OCR) by as much as 50 basis points to 2.5%.
HSBC cut its two year mortgage rate by 14 basis points to 6.35% and cut its 3 year rate by 20 basis points to 6.79%.
See all bank mortgage rates here.
HSBC's move follows announcements last week by the big four banks, TSB and Kiwibank to cut their 1 year rates by around 50 basis points.
However, none have cut their floating mortgage rates yet, waiting instead for the decision by the Reserve Bank.
Fixed mortgage rates tend to follow wholesale 'swap rate' markets more closely than the OCR (see the interactive chart here and below), which has a closer influence on floating mortgage rates. The one year swap rate has fallen from 3.37% on February 21 to 2.89% yesterday in anticipation of a cut in the OCR in the wake of the February 22 earthquake in Christchurch.
HSBC's 1 year rate of 5.79% is below the 5.95% that the other major banks are offering, although it is only open to those with either a home loan of NZ$500,000 or NZ$100,000 in savings and investments.
HSBC is also offering a 4.99% rate for 6 month mortgages if a customer takes out a home and contents insurance policy with HSBC.
BNZ cut its mortgage rates last week. See the full article here.
ANZ, Westpac and ASB cut their rates a day earlier. See the full article here.
TSB also cut its rates. See the full article here.
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.