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A new low mortgage rate launched at 2.45% for one year fixed, by HSBC. And every fixed rate offered for their Premier customers is now market-leading

A new low mortgage rate launched at 2.45% for one year fixed, by HSBC. And every fixed rate offered for their Premier customers is now market-leading

HSBC has now announced the lowest set of fixed home loan rates on offer in New Zealand, across the board.

It's most eye-catching rate is 2.45%, fixed for one year.

And all its other reductions for all other terms are market-leading as well.

It has become the only bank to offer every fixed rate, from six months to five years, below 3%.*

These HSBC rates are only available as part of their Premier package. 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 new rates apply from Tuesday, July 21, 2020.

HSBC is also cutting their [already low] term deposit rates at this time although these reductions are minor.

But it is not changing its floating rate which remains at 4.49%.

So it is also worth noting that so far, no other bank has followed Kiwibank with its full and impressive -1.00% cut to its floating rate which is down to 3.40%.

Also over the weekend, SBS Bank cut two key fixed home loan rates as well.

One useful way to make sense of these new lower home loan 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 July 21, 2020 % % % % % % %
               
ANZ 3.55 2.55 2.65 2.69 2.79 4.15 4.25
ASB 3.39 2.55 2.65 2.69 2.79 3.09 3.19
4.29 2.55 2.69 2.69 2.99 2.99 2.99
Kiwibank 3.55 2.55   2.79 2.79 3.09 3.19
Westpac 4.79 2.55 4.25 2.69 2.79 2.99 2.99
               
Bank of China  3.45 2.55 2.65 2.65 2.75 2.85 2.95
China Construction Bank 4.70 2.65 2.65 2.65 2.80 2.89 2.99
Co-operative Bank 2.69 2.69 2.75 2.75 2.99 3.19 3.29
Heartland Bank   2.89   2.97 3.39    
HSBC 2.79 2.45 2.55 2.60 2.65 2.79 2.89
ICBC  2.95 2.58 2.79 2.68 2.79 2.99 3.45
 SBS Bank 3.39 2.59 2.69 2.69 2.99 3.09 3.19
 [incl Price Match Promise]  2.99 2.55 2.65 2.69 2.79 2.99 2.99

In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.

* TSB also offers all fixed rates below 3% too, but that is only via their Price Match Promise.

Fixed mortgage rates

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9 Comments

The only thing interesting about this is that they no longer even have room to make the advertised rate look good compared with the big banks, let alone taking into account the restrictions.

Although anyone that has previously changed to HSBC would have enjoyed some of the lowest rates possible for a number of years now without having to change banks continuously.

Good point. Maybe this is about maintaining that, and existing business, rather than attracting new.

From here on tweak of .10% or .20% will be more symbolic (Though good) - law of diminishing return unless we see a long term with significant fall like below 2% or 1.5%.

Looking at the other article this morning about 10 year swaps rates it seems there is still some margin to cut.

Quick, get me my mortgage broker !! ........just got off the phone with Ashley Church and his advice was "full ya boots mate" ! ...lowest interest rates ever ! ......increases in demand because of low rates and Hong Kong'ers looking for a bolt hole here....a ton of well heeled and skilled expats winding up job contracts/deals etc and looking to come back to NZ......safest country in the world as far as COVID-19 goes ....... Hollywood and other production companies chomping at the bit to get down here to film etc .......great rental returns ......and of course yours and my favourite TAX FREE CAPITAL GAINS !!! ......what are ya waiting for !!!

The great NZ PPP (Property Ponzi Party) just never seems to end ....it is just beyond belief ! Another round of summer BBQ's coming up with all the BS how all and sundry have done so well out of residential property .......to the complete and utter detriment for the rest of the economy !!!

If its any consolation those years are numbered, interest rates can't go much lower! A nice summer BBQ does sound good right now though!

I've been hearing the "interest rates can't go much lower" for the last….. years. They can still go 200 points lower, maybe hard to believe but no harder to believe than they could go as low as 5% when they were 8% or not possibly 3% when they were 5% etc...

I am happy with my 2.99% for 5 years they may go a bit lower but I don’t want to spend the next four years chasing small cuts. 2.99% for five years would have been beyond my wildest dreams until recently, I do however agree there may be more small cuts but I would rather put my energies into other things.

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Days to the General Election: 38
See Party Policies here. Party Lists here.