HSBC undercuts market on 6-month mortgage rate

HSBC says it is offering the lowest fixed-term rate in the market – 4.85% for a six-month term.

The offer is for HSBC premier customers, who have either a minimum combined home loan of $500,000 or $100,000 in savings and investments.

And it is offering up to $1000 in legal contributions to help new customers with conveyancing costs.

HSBC’s head of retail banking and wealth management John Barclay says the bank can offer the low rate while the Reserve Bank of New Zealand continues to keep the Official Cash Rate low.

The OCR, which influences the rates banks set for mortgages, is widely expected by economists to remain at 2.5% until the end of next year at least.

Among the major banks, the closest match to HSBC’s six-month fixed-rate offer is Kiwibank offering 5.25% and ASB at 5.45%.

Smaller banks SBS and HBS are offering 4.99%.

Westpac’s four- and five-year home loan rates remain the best in the market after they were slashed to 5.99% last week – the lowest rate in more than a decade.

Data in the Reserve Bank’s latest monetary policy statement reveals there has been a dramatic shift away towards floating rates since the end of 2008.

And that has accelerated again in the last few months.

The proportion of mortgages on floating rates peaked in April at 63.1% of all mortgages and has since fallen away to 58.7%.

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7878 -0.0004 -0.05%
AUD 0.9091 0.0005 0.06%
EUR 0.6356 -0.0003 -0.05%
GBP 0.5032 0.0001 0.02%
HKD 6.1123 -0.0013 -0.02%
JPY 92.8410 0.0020 0.00%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.690 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.710 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5526.9 5526.9 5526.9 -0.56%
NASDAQ 4751.0 4751.6 4701.9 0.24%
DAX 9521.2 9736.1 9484.0 2.62%
DJI 17721.0 17894.8 17719.0 0.51%
FTSE 6678.9 6773.1 6678.9 1.08%
HKSE 23353.7 23508.0 23349.6 0.37%
NI225 17285.7 17381.6 17300.9 0.33%