Just when many thought sub 5% rates were disappearing, HSBC has launched three new fixed home loan specials at 4.99%

HSBC has launched a three year fixed home loan rate at 4.99%.

This is a reduction of 75 basis points from their previous rate of 5.74%.

They claim this is the lowest three year rate offered by any bank in a decade.

In addition they have cut their one and two year fixed home loan rates, also to 4.99%.

And reductions in their 4 and 5 year rates have been announced at the same time, to 5.50% and 5.75% respectively.

These rates are for their HSBC Premier mortgage product, and comes with the Premier conditions.

They advise this offer is open for a strictly limited time to new HSBC Premier customers and existing Premier customers who borrow an additional $100,000. 

They Standard Premier home loan rates have also been reduced to as low as 5.05%. See our tables for details.

The criteria to qualify becoming an HSBC Premier customer, individuals need either a minimum combined home loan of NZ$500,000 or NZ$100,000 in savings and investments.

HSBC says every Premier customer also has a dedicated Relationship Manager all of whom are knowledgeable and highly experienced within the New Zealand housing market. 

They also remind clients that an early repayment fee will apply, a condition that applies to fixed rate offers from any bank.

The new HSBC rates are:

Fixed term New rate % p.a. Prior rate % p.a.
1 year 4.99% 5.25%
2 years 4.99% 5.39%
3 years 4.99% 5.74%
4 years 5.50% 6.20%
5 years 5.75% 6.65%

This positions the HSBC rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
ANZ 5.25% 5.39% 5.90% 6.20% 6.60%
ASB 5.45% 5.45% 5.75% 5.95% 6.25%
BNZ 5.25% 5.40% 5.90% 6.20% 6.50%
Kiwibank 5.25% 5.25% 5.65% 5.99% 5.99%
Westpac 5.25% 5.40% 5.90% 5.99% 5.99%
Co-op Bank 5.25% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 5.25% 5.30% 5.65%   5.99%
TSB Bank 5.25% 5.30% 5.90% 6.10% 6.50%

Kiwibank has one lower rate; it has a six month fixed rate of 4.79%.

TSB Bank also has a lower rate; it has a Special 15 month offer of 4.95%.

All the latest mortgage rate offers for all institutions are here »

Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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So there we have it - all this BS last week about rates going up and HSBC stun the Aussie banks with a market leading 4.99% 3 year fixed rate!
Still too early to fix though as we might see a 3.99% rate within a few months. 

Well said.  Does question the "intelligence" within the banks when the layman could foresee this happening!   

Here come the new era of the 4's ....
the new normal = lower rates
money is cheap,  good assets are not.