HSBC home loan drops to new record-low

The changes, which come into effect on July 21, see six month to five-year rates plummet across the board. 

The one-year 2.45% is the cheapest in the market, sharper than the 2.55% offered by Westpac, ANZ, TSB, BNZ, and Kiwibank. 

Its two-year rate at 2.60% also becomes the sharpest on offer in New Zealand, edging out China Construction Bank by five basis points. 

The cuts continue a year-long trend of downward pressure on home loan rates, driven by cheaper bank borrowing costs and Reserve Bank/government stimulus amid the Covid-19 pandemic. 

While HSBC's rates are the sharpest on offer, they are not as widely available as their peers'. 

To qualify for HSBC Premier, borrowers need a loan of more than $500,000, or $100,000 in savings and investments in New Zealand. 

According to the bank, minimum home loan values no longer apply, although other home lending criteria may still need to be met.

ASB has also cut rates this morning. The bank has slashed its one year rate to 2.55%, in line with its big four rivals, while its three-year drops to 2.79%.