HSBC sets a new low home loan rate

HSBC New Zealand has launched a refreshed summer mortgage campaign offering a market-leading ‘special’ rate of 3.69% for a two-year fixed home loan, which is 50 bps lower than the best rate offered by a competitor for that term.

This is also the lowest rate that HSBC has ever offered in the New Zealand market, trumping its previous lowest rate of 3.79%  for a 2-year term in August 2016, which at the time was the lowest fixed home loan rate offered in the New Zealand market for over 50 years.

“While we’ve received strong interest in our earlier market-leading summer campaign offer of 3.95% across one, two and three-year terms, feedback from our customers clearly demonstrates that a sharper two-year term would be even more attractive,” HSBC New Zealand chief executive Chris Russell said. “We are pleased to respond by offering our customers our lowest-ever home loan rate of 3.69% p.a. for a 2-year fixed home loan, half a per cent below the market.”

After three weeks in the market, HSBC’s earlier summer mortgage campaign offer of 3.95% for one, two and three-year fixed terms has been superseded by this offer. In addition, the bank has reduced its two, three, four and five-year fixed-term home loans to 3.99%, 4.39%, 4.89%. and 4.95% p.a., respectively, so that all of its carded rates are now sub-5%.

This special home loan rate is being offered for a limited time to new HSBC Premier customers, and existing HSBC Premier customers who borrow an additional $100,000 or more. Minimum deposit and equity criteria also apply.