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||%||%||%||%||%||%||%|
|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|
|[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.