HSBC New Zealand has announced a new summer mortgage campaign, and is offering a ‘special’ rate of 3.69% per annum for a two-year fixed home loan. The rate is available to HSBC Premier customers, and is 50 bps lower than the best rate offered by its closest competitor.
This is a record low rate for the bank, surpassing its previous lowest rate of 3.79% for a two-year fixed term in August 2016, which was the lowest fixed home loan rate offered in New Zealand for over 50 years at the time.
According to HSBC New Zealand CEO Chris Russell, the new rate was put in place in response to strong interest from the market around two-year fixed term options, and says that its previous ‘special’ rate offerings have been met with enthusiasm by clients.
“We’re operating in a very competitive market at the moment,” Russell told NZ Adviser. “We’ve had our three-year special rate going for three weeks now, and we’ve gotten a lot more interest around a two-year rate – so this is very much a reaction off the back of that interest.”
“It’s interesting to see where the enquiries come from for this particular campaign, which is geared towards our HSBC Premier customers – but we’ve also been seeing twice as many new purchasers coming in,” he explained. “Of those, over 10% have been first home buyers, which is fantastic.”
“We’re very keen to have our product directed at the younger generation, and we’re encouraged to see that it is gathering interest among that demographic.”
Russell says HSBC is looking to maintain its history of offering some of the best rates in the New Zealand market, and says he is confident in the country’s current lending environment and the benefits it beings to homebuyers.
“We have a consistent track record of ensuring that we have very competitive rates in the market,” he stated. “If you look at the overall market, we remain very confident about the conditions here in New Zealand, and we’re keen to continue supporting that situation.”
The two-year fixed rate is available to HSBC Premier customers for a limited time. Qualification criteria for HSBC Premier includes either a minimum combined home loan of $500,000, or $100,000 in savings and investments with HSBC New Zealand.