HSBC cuts two year home loan rate

by Ksenia Stepanova14 Feb 2020

HSBC has launched a new ‘special’ two-year fixed home loan rate of 3.20% per annum, the lowest mortgage rate that the bank has ever offered in New Zealand.

This comes at a time where the Official Cash Rate (OCR) looks set to remain on hold for some time, and mainstream banks have started slowly raising their mortgage rates.

The new rate beats the 3.35% rate offered by HSBC in September when it cut all of its rates to 3.35% across the board and set a record low five year rate, the closest competitor at the time being Kiwibank’s 3.99%.

HSBC’s new two-year ‘special’ rate is now the third lowest on the market, with China Construction Bank and ICBC offering 3.15% and 3.18% respectively. ASB, BNZ, Kiwibank and Westpac’s two-year rates are all currently 3.55%.

HSBC New Zealand’s head of retail banking and wealth management Martine Milicich says the new rate reflects the bank’s commitment to offering the best mortgage rates on the market.

“Whether you’re looking to buy a new home, a home away from home, or simply refinance your existing home, our highly competitive 3.20% p.a. two-year fixed home loan rate offer could help you achieve that goal,” Milicich said. “We are pleased to continue our consistent track record of offering very competitive mortgage rates to our customers in the New Zealand market.”

The new special rate is available to new HSBC Premier customers for a limited time, and to existing Premier customers who borrow a minimum additional $100,000. HSBC Premier qualification, minimum deposit and equity criteria applies to all borrowers.

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