HSBC is parleying its wholesale funding advantage into very low mortgage rate pricing.
It has launched a two year Premier special of 3.69%, the lowest-ever fixed home loan rate from any bank.
At the same time it has withdrawn all other Premier special rates, effectively raising them even though the new standard Premier rates are mostly market-leading.
The new 3.69% two year rate is -50 bps lower than Kiwibank's 4.19% rate, the next lowest for that term.
This is also the lowest rate that HSBC has ever offered in the New Zealand market, trumping its previous lowest rate of 3.79% for a 2-year term in August 2016, which at the time was the lowest fixed home loan rate offered in the New Zealand market for over 50 years.
All of HSBC's carded rates are now sub-5%.
This special 2 year home loan rate is being offered for a limited time to new HSBC Premier customers, and existing HSBC Premier customers who borrow an additional $100,000 or more.
Minimum deposit and equity criteria also apply. An individual can qualify to become an HSBC Premier customer either via a minimum combined home loan of $500,000, or $100,000 in savings and investments with HSBC New Zealand.
Two year wholesale rates have dipped -10 bps from the start of 2019 and this fall has helped HSBC especially. Most other banks are primarily funded by customer deposits.
Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.
|below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at March 5, 2019||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate of 5.95%. TSB no longer has a 10 year offer.