HSBC ends its 3.35% across-the-board mortgage rate offer, raising rates by between +19 bps and +54 bps, but still with offers that are generally competitive with the main banks

HSBC ends its 3.35% across-the-board mortgage rate offer, raising rates by between +19 bps and +54 bps, but still with offers that are generally competitive with the main banks

HSBC has raised most of its fixed mortgage rates.

It is moving its rates up, and some of these changes put HSBC pricing above offers from the main banks.

For one year, eighteen months and two years, the increase is +19 bps, taking their 3.35% rate for each of these terms to 3.54%.

For three years, the rise is +34 bps.

For four years, the rise is +44 bps.

And for five years, this latest rise by HSBC is +54 bps to 3.89%.

HSBC adopted its 3.35% rate for all terms on Monday, September 2, 2019. It has lasted 87 days.

Since then, wholesale swap rates have risen +16 bps for one year, +22 bps for two years, and about +25 bps for three, four and five years.

These latest HSBC rates are still lower than those that were in place before the 3.35% pricing point was adopted. The new rates are all -15 bps lower for fixed terms to three years and -40 bps lower than four and five year terms.

We have seen small rises from other banks for two year fixed offers, but no general rises like this one at any time in 2019.

It is the three other Chinese banks that remain with the lowest rate offers in this market.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

Fixed, below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at November 27, 2019 % % % % % % %
               
ANZ 3.65 3.39 3.99 3.45 3.99 4.75 4.85
ASB 3.89 3.39 3.75 3.55 3.89 4.19 4.29
4.79 3.55 4.55 3.45 3.99 3.99 3.99
Kiwibank 4.29 3.39   3.55 3.89 3.99 3.99
Westpac 4.79 3.55 4.25 3.45 3.99 4.35 4.45
               
Bank of China 3.99 3.15 3.39 3.39 3.79 3.99 3.99
Co-operative Bank 3.49 3.49 3.59 3.59 3.89 3.99 4.09
China Construction Bank 4.70 3.15   3.15 3.19 3.30 3.45
ICBC 4.29 3.18 3.18 3.18 3.20 3.99 3.99
HSBC 4.19 3.54 3.54 3.54 3.69 3.79 3.89
HSBC 4.29 3.65 3.69 3.45 3.89 4.49 4.49
  4.35 3.55 3.55 3.45 3.89 4.45 4.55
Price Match Promise   3.65 3.39       3.99 3.99

In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here. And term PIE rates are here.

Fixed mortgage rates

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23 Comments

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Just like Briscoes?
If you want shoppers to notice you've dropped your prices, put them up first!

The commerce commission hasn't picked up Briscoes -DEFLAMATORY

I think you mean "defamatory".

First of many? Interesting times.

Wouldn’t it be a shock if rates started to go up.

Is it possible that the banks expected a further OCR drop this month and pre-emptively included it in their mortgage rates? And now they have to back up in order to not lose too much money.

Confirmed today 3.39% 12 months plus $3250 cash back. Banks looking after good customers

How long are you locked in for with the cashback? Which bank?

3 yrs which seems to be standard. Westpac.

Well done!
You must be an extra special customer...(and, Yes. Banks will want to keep such as you)
"Special fixed rate eligibility criteria: minimum of 20% equity, plus salary credit to a Westpac transaction account, to be issued prior to drawdown date. These special fixed interest rates cannot be used in conjunction with any other Westpac home loan offers or discount packages, including previously negotiated offers, legal fee contributions or the Westpac Choices Home Loan with Airpoints. These special fixed interest rates do not apply to loans for business or investment purposes."
https://www.westpac.co.nz/home-loans/interest-rates/

Are you an existing Westpac customer ? We are in the process of walking from a long term relationship with Westpac as they were adamant they dont pay retention incentives.
Two other Banks who weve never had a relationship with are offering 0.8% cash and a shading on most of their published rates to change.

I have been offered cash backs from ANZ as an existing customer. However, it was well below the amount offered by Westpac which was one of the reasons I jumped ship to Westpac (0.3% v 0.8%). I find the sales teams at the banks have a lot more "discretion" than the retention teams.

Yes we are with Westpac but equally with ANZ. You are correct about being reluctant to pay retention incentives, we have a very good long standing relationship with Westpac and they obviously wanted to retain our business from ANZ. New banks (new security) nearly always come up with a better cash back offer and 0.8% is more than what we received but we dont have to move banks. HeavyGs comment is bang on the money, the offers work both ways depending on who you are with.

Ironically we would have stayed for 0.2% because refinancing is bit of a pain. However in the circumstances im happy to wander over the road and pocket the thick end of $5k after legals.
No point staying if you're not feeling the love....

So you and HeavyG have swapped places and it has cost the banks 0.8%. Could have retained both of you for less hilarious! Lol

KB are also offering stellar deals at the moment.
Very keen to take customers off the Aussies - this morning, just secured 3.5% for 24 months, legal fees paid, $5k cashback on a 3 year lock-in.

ANZ offered me nothing to stay, even though I gave them first right of refusal.
Saying that I wasn't keen to stay with them given their appalling lack of probity at the ELT/Board level re the Hisco affair.

3.39% plus $10,000 cash back offer from TWO banks here to switch. But got zero offer from my current bank

Per my comment in this article:

by Nzdan | 14th Nov 19, 7:05am
Banks probably want interest rates to rise after a prolonged period of increasing loan book size. A bait and switch of sorts. Get everyone juiced up on low lending rates and then tighten up the vice on the balls.

https://www.interest.co.nz/bonds/102567/markets-price-lending-rate-hikes...

May the good times keep rolling

I see the table is still wrong with ANZ, who do not have an advertised 1 year rate of 3.39% nor an advertised rate match

They are definitely offering 3.39% behind the scenes

As is BNZ, but the table says it’s advertised rates, so the data purist in me thinks it should show their advertised rates. Typically all of the big 4 will match the other advertised rates behind the scenes