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% |
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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 »
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8 Comments
The only direction for interest rates in NZ is down, due to a relatively high OCR internally currently, and low rates elsewhere. And a low rate of borrowing and a need for stimulus in the general economy.
borrowers were misled early this year by threats of ongoing hikes.
Many small businesses borrow via their home loan otherwise they pay 14% or higher for business overdrafts/loans. Why does NZ need to kneecap itself?
As to misleading: go back over the last 5 years of completely misleading predictions of higher interest rates coming soon so fix your loans for 3 years etc.
Sustainability requires a globally aligned relativity. - Our businesses face high interest rates, low consumer demand, and a general lack of liquidity right throughout the general economy.
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