HSBC has advised that its 3.95% 18 month fixed hoime loan rate for Premier customers will end on Friday, May 20, 2016.
To qualify for this rate an approved loan application will need to be drawn down by May 31, 2016.
This mortgage rate is currently the lowest in the market.
However it is only available to borrowers who qualify for Premier status, which requires either a high loan amount ($500,00 or greater), or the client has at least $100,000 deposited with the bank. Clients who have accounts with an HSBC branch overseas also automatically qualify.
The bank is focused on growing market share in its target market, which is defined as "mass affluent customers, with incomes over $120,000, and who have international needs". This is where the Premier criteria is aimed.
The offer is available to new HSBC Premier customers or existing HSBC Premier customers who borrow at least an additional $100,000. To qualify for this offer customers must have at least 20% home loan deposit or equity (or 30% for investment properties in Auckland) and have their salary credited to a HSBC transaction account.
This offer launched on February 17 and despite wholesale rates that fell sharply after that, no other bank followed it down below 4%.
HSBC has always maintained business done at this rate was profitable for it.
Here is where fixed rates stand now:
| below 80% LVR | 1 yr | 18mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | |
 |
4.25 | 4.89 | 4.35 | 4.99 | 5.20 | 5.30 |
 |
4.15 | 4.15 | 4.39 | 4.65 | 5.00 | 5.15 |
 |
4.25 | 4.99 | 4.39 | 4.64 | 4.99 | 5.15 |
 |
4.29 | 4.25 | 4.75 | 4.90 | 4.99 | |
 |
4.25 | 4.95 | 4.39 | 4.80 | 5.09 | 5.19 |
 |
4.25 | 4.35 | 4.35 | 4.65 | 4.89 | 4.99 |
 |
4.25 | 3.95 | 4.39 | 4.59 | 4.79 | 4.99 |
 |
4.10 | 4.35 | 4.29 | 4.65 | 4.99 | |
 |
4.35 | 4.35 | 4.19 | 4.79 | 5.35 | 5.35 |
In addition, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.
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