HSBC's home loan rate changes make it the cheapest across all fixed terms

Monday 20th September 2010

HSBC has kept up its aggressive pricing strategy around home loans now has the lowest bank rate acorss all terms, despite making an increase to its six month rate today.

However it has also decreased its two, three and five year fixed home loan interest rates.

HSBC's two year rate comes down 25 basis points from 6.74% to 6.49%, the three year rate dropping 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%.

Further to that, the six month rate increases by 50 basis points from 4.99% to 5.49%. The next lowest six month rate offered by a bank in the market is 6.25%.

There is a catch though. To be eligible to take up the HSBC home loan offer, customers need to qualify for HSBC Premier, with minimum combined home loans of $500,000, or $100,000 in savings and investments.

HSBC head of personal financial services John Barclay says five months ago HSBC announced its drive to offer the best fixed rates in the market and since then it's been aggressive on a number of rates, but today's announcement sees it leading the market.

He says the launch of today's campaign is in part due to the success of our initial campaign, but it's also a reflection of the current 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 says.

See how HSBC compares against the other banks at www.mortgagerates.co.nz

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