HSBC has cut rates aggressively, and now has the lowest fixed home loan rate offer for every term.
The feature of their new Premier rate card is 2.60% fixed for one year.
But they also have the lowest rate for every other term, and share it with only BNZ at 2.99% for five years fixed.
This is now getting seriously low, although qualifying for the HSBC Premier offers isn't for everyone.
However, if you can meet these requirements, the interest rate load on your mortgage payment will fall away to historically low levels.
The new HSBC six month rate is now 2.95% (-54 bps). For eighteen months and two years fixed its is down to 2.65% (reductions of -20 bps and -24 bps respectively).
For three years the new rate is 2.80% (-70 bps), for four years now 2.89% (-71 bps) and for five years it is 2.99% (-0.71 bps).
To qualify for HSBC Premier, you need to meet the following qualifying criteria:
- A minimum value of $500,000 in home loans with HSBC in New Zealand (facility limit not outstanding balance); and/or
- A minimum value of $100,000 in savings and investments with HSBC in New Zealand; and/or
- If you are an overseas HSBC Premier customer you will automatically qualify for Premier customer status in New Zealand.
After qualifying as a HSBC Premier customer, minimum home loan values no longer apply, although other home lending criteria may still need to be met.
These newly announced HSBC rates become effective on Thursday, May 28, 2020.
One useful way to make sense of these new lower rates is to use our full-function mortgage calculators.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options.
Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at this time.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at May 25, 2020||%||%||%||%||%||%||%|
|Bank of China||3.89||2.79||2.89||2.89||3.19||3.79||3.89|
|China Construction Bank||4.70||2.80||2.85||3.19||3.30||3.45|
|HSBC [May 28, 2020]||2.95||2.60||2.65||2.65||2.80||2.89||2.99|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.