HSBC has launched a new 18 month 'special' fixed mortgage rate of 3.87%.
This is a -22 bps reduction from its previous rate for this term.
To qualify, you must be a HSBC Premier customer, and must provide an owner occupied property as part of the security.
It is available to both new and existing HSBC Premier customers who borrow at least an additional $100,000. Minimum equity and deposit criteria apply. HSBC’s normal lending criteria applies. It is being promoted as "for a limited time".
This is the only home loan currently being offered in the New Zealand market for under 4% pa and is even lower than the 3.95% rate for the same tenor that the Bank launched in February 2016, which at the time was the lowest residential mortgage rate in the New Zealand market for over 50 years.
To be a HSBC Premier customer you must have combined lending of $500,000 or more, or $100,000 of savings and investments with HSBC. (Early repayment fees may apply to fixed rate loans.)
At the same time, it has raised its one year fixed rate by +10 bps to a still market-leading 4.19%.
Over the weekend, SBS Bank also made a small change to their three year rate, reducing it -16 bps to 5.09%. That new rate matches some of the main banks for that term.
Update: BNZ has also now changed a rate. Its 2 year carded fixed offer is now 4.69%, a -6 bps reduction to match its main rivals.
These changes come as wholesale swap rates start to rise again. More rises in these base rates are expected today following Wall Street's moves at the end of last week.
Here is the full snapshot of the fixed-term rates on offer from the key retail banks.
|below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at October 1, 2017||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB Bank still has a ten year fixed rate of 6.20%.