HSBC announces some substantial home loan rate reductions but these come amidst sharp wholesale market movements and just 14 days after they hiked rates sharply

HSBC is cutting all its fixed home loan rates by up to 39 basis points.

However Friday's reductions come just two weeks after HSBC sharply raised these very same rates.

One way to put the change into perspective is to track these shifts, like this:

Over a fourteen day period these are substantial shifts.

But a lot has been going on in the period since the July 14 RBNZ monetary policy rate review and that activity has moved wholesale interest rate markets sharply - as you can see from the swap rate charts below.

Since then, the one year swap rate has risen +45 bps and the two year swap rate by +40 bps. The net HSBC rate changes are actually less than these wholesale changes.

Markets are pricing in substantial hikes in the OCR, and the RBNZ will next get its opportunity to either change or signal change at their August 18, 2021 Monetary Policy Statement review.

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One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculators. (Term deposit rates can be assessed using this calculator).

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. Break fees should be minimal in a rising market.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Update: This table has been updated with a Kiwibank rate increase.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at August 6, 2021	%	%	%	%	%	%	%
ANZ	3.39	2.55 +0.05	2.74	2.95 +0.05	3.15 -0.09	3.99	4.39
	3.29	2.55	2.79	2.95	3.29	3.69	3.99
	3.29	2.55	2.79	2.95	3.25	3.69	3.99
	3.55	2.49		2.79 +0.30	3.29	3.59	3.89
	3.29	2.55	2.75	2.89	3.29	3.49	3.79
Bank of China	3.45	2.39	2.59	2.79	2.99	3.39	3.69
China Construction Bank	2.65	2.65	2.65	2.85	3.25	3.55	3.99
Co-operative Bank (*FHB only)	2.49	2.29*	2.69	2.89	3.19	3.49	3.79
Heartland Bank		2.15		2.45	2.65
HSBC	2.89 -0.30	2.40 -0.39	2.65 -0.24	2.79 -0.20	3.05 -0.24	3.39 -0.10	3.69 -0.10
ICBC	2.49	2.29	2.49	2.69	2.99	3.29	3.59
(*FHB only)	2.79	1.99* -0.40	2.59	2.79	2.99	3.39	3.69
[incl Price Match Promise]	2.89	2.50	2.74	2.89	3.24	3.49	3.79