HSBC slashes mortgage rates

by Roxanne Libatique30 Mar 2020

HSBC has slashed its mortgage rates below 3% amid the Covid-19 pandemic and New Zealand’s Alert Level 4 lockdown.

HSBC has launched new 18-month and one-year loan rates at 2.95%, which are available to borrowers who loaned more than $500,000 or $100,000 in savings. Meanwhile, the bank’s six-month fixed rate is 3.64%, two-year rate at 3.09%, three-year rate at 3.50%, four-year rate at 3.60%, and five-year rate at 3.70%.

Aside from the new rates, HSBC announced a US$25 million coronavirus donation fund that would go to relief and recovery efforts around the world.

“Medical services in dozens of countries are under enormous pressure, entire economies are in stasis, and hundreds of millions of lives have been upended. This is a crisis that requires a response from every part of society,” the bank said on its website.

“Alongside doing everything it can for its customers, [we are] providing USD25 million in charitable donations to support the international medical response, protect vulnerable people, and ensure food security around the world. Of this figure, USD15 million will be made available immediately, with the remaining USD10 million set aside for long-term COVID-19 commitments.”

Read more: Government backs interest rate drop to support economy

HSBC has been working with its clients to connect suppliers of coronavirus diagnostic kits and other medical items with logistic firms and national health authorities around the world.

“The COVID-19 challenge is a marathon, not a sprint. There will be no quick fixes or easy wins. We hope these donations can help make a difference to the people and societies we serve, now and in the future,” Daniel Klier, global head of sustainable finance at HSBC, commented.

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