HSBC has cut its 3 year-fixed home loan rate to a market-leading 5.99% late this afternoon.
This undercuts what had become the benchmark of 6.25%, a rate adopted by five other banks.
At the same time, it has raised its two year rate from 5.79% to 5.99%, relinquishing its market leading rate for that term.
These special 2 and 3 year fixed rates are open for a limited time to new HSBC Premier customers, as well as existing HSBC Premier customers who borrow an additional $100,000.
The bank has maintained the rest of its highly competitive fixed home loan rate card at current levels including 5.59% per annum for 1 year – still the best rate currently offered by any bank in New Zealand – 6.89% per annum for 4 years and 6.99% per annum for 5 years.
To qualify as an HSBC Premier customer you need either via a minimum combined home loan of $500,000 or $100,000 in savings and investments with the bank.
Premier clients get a dedicated local 'relationship manager'.
These reductions come on the back of some recent sharp falls in international wholesale rates which are flowing through to local swap markets.
See all banks' carded, or advertised, home loan rates here.
The latest fixed rates compare as follows:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.85% | 5.99% | 5.95% | 6.85% | 7.40% |
 |
5.95% | 5.99% | 6.19% | 6.25% | 7.40% |
 |
5.85% | 5.99% | 5.95% | 6.25% | 7.40% |
| Kiwibank | 5.85% | 6.19% | 6.29% | 7.20% | |
 |
5.85% | 5.99% | 6.19% | 6.25% | 7.40% |
| Co-op Bank | 5.85% | 5.85% | 5.99% | 6.35% | 6.99% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.60% | 5.85% | 5.99% | 6.25% | 6.79% |
| TSB | 5.70% | 5.85% | 5.99% | 6.25% | 7.40% |
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