HSBC cuts 2-year mortgage rate for 'Premier' customers to 5.79%

HSBC cuts 2-year mortgage rate for 'Premier' customers to 5.79%

HSBC has slashed its two-year fixed home loan interest rate by 50 basis points to a market leading 5.79% per annum.

The catch is the rate is only available to borrowers with a deposit or equity of at least 20%, and to the bank's Premier customers who qualify by having a minimum home loan of $500,000 or $100,000 in savings and investments with HSBC.

The 5.79% rate is 11 basis points below the next lowest advertised, or carded, bank two-year rate of 5.79% offered by SBS Bank.

HSBC says the rate will be offered for "a strictly limited time" to new HSBC Premier customers and existing HSBC Premier customers who borrow at least an additional NZ$100,000 or more.

“With the RBNZ having raised its Official Cash Rate (OCR) by 0.25% on 13 March to 2.75%, and the majority of market commentators expecting the OCR to rise to at least 4.50% by the end of 2015, this could be the ideal time to become an HSBC Premier customer and take advantage of both this very competitive two-year fixed rate, as well as the many other benefits of the HSBC Premier offering,” Glen Tonks, HSBC's head of retail banking and wealth management, said.

HSBC's floating and revolving rates will both rise by 25 basis points from April 1 to 6.24%.The bank has also increased its six month and one year rates by 14 and 24 basis points, respectively, to 5.39% and 5.59%.

below 80% LVR Floating Revolving
    Credit
5.99% 6.10%
ASB 6.00% 6.00%
 - Total Money 5.99% 6.19%
 - Standard & FlyBuys 6.19% 6.19%
Kiwibank 5.90% 5.90%
Westpac 5.64% 5.75%
     
Co-op Bank 5.95% 5.95%
HSBC 6.24% 6.24%
SBS / HBS 5.90% 5.90%
TSB 6.04% 6.04%

See all carded, or advertised, bank home loan rates here.

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.69% 5.85% 6.29% 6.65% 7.20%
ASB 5.69% 5.85% 6.29% 6.60% 7.20%
5.69% 5.85% 5.95% 6.29% 7.20%
Kiwibank 5.49%   5.99% 6.40% 6.90%
Westpac 5.49% 5.85% 5.95% 6.35% 7.20%
           
Co-op Bank 5.49% 5.85% 5.99% 6.35% 7.10%
HSBC 5.59%   5.79% 6.55% 7.20%
SBS / HBS 5.50% 5.75% 5.90% 6.20% 6.85%
TSB 5.40% 5.85% 5.99% 6.40% 7.20%

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Irrelevant comment deleted, Ed. See our commenting policy here - http://www.interest.co.nz/news/65027/here-are-results-our-commenting-pol...

Not correct. Resimac have had market leading fixed rates for months.  Two year is 5.65% to 80%, that way below anyone else.

We are referring to bank rates as noted in the story; "The 5.79% rate is 11 basis points below the next lowest advertised, or carded, bank two-year rate of 5.79% offered by SBS Bank."

Forgive my irrelevant comment.  However it is perhaps relevant to New Zealanders that HSBC did have capital controls in place last year.  Forensic asia noted that they may have overstated their assets by 92.3 billion dollars.   In the context of the OBR, a potentially insolvent bank is a concern.