Today (Friday), HSBC reprises its sub 4% mortgage rate offer.
This time it is offering a fixed 2-year home loan rate of 3.95% as a 'special'.
This special home loan rate is being offered to new HSBC Premier customers, and existing Premier customers who borrow at least an additional $100,000. To qualify for this rate, customers must provide an owner-occupied property as all or part of the security.
Minimum deposit and equity criteria also apply.
HSBC Premier qualifying criteria are a minimum of either $500,000 in home loans or $100,000 in savings or investments with HSBC New Zealand.
Today's change comes after almost all their rivals cut carded rates for one to two year fixed terms in the past two weeks, narrowing their market advantage.
At 3.95% this is the lowest of any rate for any term in the new Zealand home loan market. And it is -44 bps lower than the next lowest two year offer, from TSB. It is -35 bps lower than ASB's one year fixed rate offer.
Just having such a rate stand in the market is sure to be confronting for most other banks.
The last time a home loan rate was below 4% was in October 2016 when HSBC offered a 3.79% two year 'special'.
Wholesale rates have been rising, but not at the short end of two years or less.
Also, keep in mind that Kiwibank does have a $2,000 cashback offer on the table provided you stay with the bank for three full years.
If you are in the market for a mortgage, or a rollover, now is a good time to negotiate.
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 February 16, 2018||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB still has a ten year fixed rate of 6.20%.