HSBC is undercutting the fixed home loan market with an aggressive new campaign for its high-end customersThe niche bank has slashed its two, three and five-year fixed home loan interest rates for its premier customers to what it says is the lowest availa
HSBC is undercutting the fixed home loan market with an aggressive new campaign for its high-end customers
The niche bank has slashed its two, three and five-year fixed home loan interest rates for its premier customers to what it says is the lowest available from a bank in New Zealand.
HSBC Premier's two-year rate has been reduced by 25 basis points from 6.74% to 6.49%, the three-year rate by 10 basis points from 7.09% to 6.99% and the five-year rate by six basis points from 7.65% to 7.59%.
The six-month rate has been increased by 50 basis points from 4.99% to 5.49%, but that is still below the next lowest six month rate offered by a bank in the market is 6.25%.
Premier customers need to have minimum combined home loans of $500,000, or $100,000 in savings and investments.
HSBC’s head of personal financial services John Barclay said the campaign reflected the housing market.
“New Zealand is officially out of the recession, and we’re seeing a gradual increase in the number of buyers at the premium end of the market wanting to purchase property – particularly now that the weather is starting to warm up.
Of those who are looking to buy, a number have expressed a strong preference for fixed rates – especially with the uncertainty in the market. This is about providing them with the competitive rates they are after,” he said.
HSBC has an approximate 3-4% share of the mortgage market.
