The low and flat rates that have been evident in wholesale money markets have come today to the mortgage market.
Term deposit savers should be wary of this news.
HSBC has today launched a unique home loan rate card with the same rate for all its terms 1 to 5 years.
The rate is 5.29%.
That means this is the lowest rate offer for all those terms, except for 2 years where SBS Bank's 5.19% trumps it.
It also means ASB's claim of the 'lowest 5 year rate of 5.75% which they made this morning is already gazumped.
Since 2001 when our detailed records began we have never had any institution offer the same rate across the whole 1 to five year fixed rate tenors.
These HSBC offers are for their Premier 'special' rates. Premier standard rates have also been reduced today across all terms.
The 'special' rates are a limited time offer to new HSBC Premier customers, and existing HSBC Premier customers who borrow an additional $100,000 or more. To qualify for this offer customers must have at least 20% deposit or equity, and have their salary credited to a HSBC transaction account.
You qualify to become an HSBC Premier customer either via a minimum combined home loan of $500,000 or $100,000 in savings and investments with HSBC.
This new flat rate offer is a consequence of the wholesale yield curve.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how mortgage rates from the banks compare on Friday, February 13, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.39% | 6.09% | 5.39% | 5.79% | 6.49% | 5.89% |
 |
5.59% | 5.70% | 5.39% | 5.59% | 5.99% | 5.75% |
 |
5.69% | 6.09% | 5.39% | 5.69% | 6.49% | 5.79% |
 |
5.69% | 5.55% | 5.55% | 5.99% | 5.79% | |
 |
5.99% | 6.09% | 5.49% | 5.89% | 6.49% | 5.99% |
 |
5.59% | 5.49% | 5.59% | 5.74% | 5.89% | 5.89% |
 |
5.29% | 5.29% | 5.29% | 5.29% | 5.29% | |
| SBS Bank | 5.59% | 5.74% | 5.19% | 5.49% | 5.79% | |
 |
5.70% | 5.80% | 5.50% | 5.95% | 6.40% | 6.50% |
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP360 mortgage broker can be contacted by following this link »
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