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 |
 |
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 |
 |
4.29 | 3.39 | 3.55 | 3.89 | 3.99 | 3.99 | |
 |
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 |
 |
4.19 | 3.54 |
3.54 |
3.54 |
3.69 |
3.79 |
3.89 |
 |
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
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.
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.
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-hike…
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