Niche bank HSBC has undercut the market with new home loan rate to lure wealthy customers.HSBC Premier includes a six-month, fixed-term rate of 4.99% -- the lowest of all currently published rates in the market including variable rates and a drop of 50 ba
Niche bank HSBC has undercut the market with new home loan rate to lure wealthy customers.
HSBC Premier includes a six-month, fixed-term rate of 4.99% -- the lowest of all currently published rates in the market including variable rates and a drop of 50 basis points from its previous rate.
The closest six-month rate being offered today is 5.7% from National Bank.
HSBC also offers a 12-month rate of 5.49% -- the only one-year, fixed-term rate that falls below 5.5%. The closest equivalent on offer from the major banks today is 6.15% from Westpac and National Bank. Smaller banks Kiwibank, SBS and Median are also offering 6.15%.
HSBC’s one and two-year rates have also been slashed by 50 basis points to 5.49% and 6.49% respectively.
To qualify, customers need to have $100,000 on deposit with the bank or minimum combined home loans of $500,000.
HSBC head of personal financial services John Barclay said the bank was trying to attract high net worth customers with its additional personalised services.
HSBC had about 3-4% share of the mortgage market and Mr Barclay did not expect competitors to be able to match the Premier rate.
Reserve Bank data for February, reveals 58% of home loans with registered banks are on fixed-term rates and 42% are on floating rates.
The Reserve Bank is expected to raise interest rates off record lows later this year.
