Non-major offers lowest home loan rate in half a century

by NZ Adviser17 Feb 2016
Effective today, HSBC is offering an 18 month fixed rate special of 3.95%, making it the lowest home loan rate offered in New Zealand in over 50 years.

This is the first time HSBC has offered an 18 month fixed-term home loan in New Zealand and the special offer is only available to new HSBC Premier customers and existing HSBC Premier customers who borrow at least an additional NZD100,000.

To qualify for this offer customers must have at least 20% home loan deposit or equity (or 30% for investment properties in Auckland) and have their salary credited to a HSBC transaction account. 

“In these uncertain times we are pleased to be able to provide our customers with certainty over the short-to-medium term by offering this 3.95% p.a. 18-month fixed mortgage, the lowest rate in over 50 years,” HSBC New Zealand head of retail banking and wealth management, Glen Tonks said in a statement.

“HSBC has been consistently offering highly competitive and often market-leading home loan rates in New Zealand for a number of years now, and I would like to reassure people considering refinancing with HSBC down the track that we are committed to continuing to do so,” he added.

In addition, the bank has reduced the carded rates for its 6 months, 2 year, 3 year and 4 year fixed-term home loans to 4.85% p.a., 4.39% p.a., 4.59% p.a. and 4.79% p.a., respectively.

The only other rate to reach the 3% zone was SBS Bank's 'special' of 3.99% that was available for a limited time in November 2015.

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