Today, HSBC has lowered its one year Premier home loan rate to 5.39%, a new market-leading low.
This is a reduction of -36 bps.
The offer will be available from Friday, October 31, 2014.
It will only be available to new HSBC Premier customers, and existing HSBC Premier customers who borrow an extra $100,000 or more.
It is presented as available for an unstated 'limited time'.
To qualify to become a Premier customer, you will need either a minimum combined home loan if $500,000, or a minimum of $100,000 in savings and investments with HSBC.
To get the 5.39% rate you also need to have at least 20% equity in the home.
That new one year rate is easily the lowest of any one year mortgage rate in New Zealand at present.
At the same time, HSBC have ended their two and three year 5.75% 'special' rates, but adopted 5.75% as their standard two year rate.
Their standard three year rate has now become 5.99%.
They do have a standard one year rate which is now 5.69%, presumably for those clients who do not have 20% equity.
HSBC does not offer cash-back incentives, which have become ubiquitous recently in the New Zealand home loan market.
These changes come on the day that short term swap rates fell by about 2 bps, and the RBNZ dropped talk of future rate hikes.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how the updated mortgage rates will compare as at 8:00 am Friday, October 31, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.69% | 6.25% | 5.75% | 6.09% | 6.99% |
 |
5.70% | 6.30% | 5.75% | 6.19% | 6.99% |
 |
5.89% | 6.25% | 5.75% | 5.85% | 6.99% |
 |
5.69% | 5.75% | 6.19% | 6.79% | |
 |
6.09% | 6.30% | 5.75% | 6.19% | 6.49% |
| Co-op Bank | 5.70% | 5.89% | 5.89% | 6.19% | 6.75% |
 |
5.39% | 5.75% | 5.99% | 6.99% | |
| SBS Bank | 5.85% | 5.99% | 5.99% | 5.89% | 6.79% |
 |
5.95% | 6.05% | 5.79% | 6.30% | 7.00% |
--------------------------------------------------------------
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 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.