HSBC has come out with a new market-leading rate across all of its terms, just one business day after Kiwibank became the first mainstream lender to offer a four and five-year rate below 4%.
HSBC New Zealand has dropped its fixed home loan rates across all of its tenors between one and five years, and is offering a flat rate of 3.35% p.a. across the board. This is easily the lowest mortgage rate to have ever been offered in New Zealand, with the five-year rate being 0.64% lower than Kiwibank’s record low offering of 3.99%.
The cuts have once again put HSBC well ahead of the pack in the home loan space, with Kiwibank following close behind - the only other bank with all of its fixed-term rates sitting below 4%.
Commenting on the cuts, HSBC New Zealand’s head of retail banking and wealth management Martine Milicich says the new rates will allow customers full flexibility to select the term which works best for them.
“We are pleased to offer New Zealanders the opportunity of a single, market-leading interest rate of 3.35% p.a. for one through five-year fixed home loans,” Milicich said.
“What I like about this offer is that our customers can choose the terms that best suit their individual needs.”
HSBC’s ‘special’ home loan rates are available to new HSBC Premier customers, and existing Premier customers who borrow an additional $100,000 or more.
To qualify for Premier status, customers need to have either a minimum of $500,000 in loans, or a minimum of $100,000 in savings or investments. Overseas Premier customers automatically qualify for Premier status in New Zealand.