HSBC cuts 3, 4, 5 year fixed mortgage rates for those with NZ$500,000 mortgages

HSBC has cut its three, four and five year fixed home loan rates and the bank says it now offers the lowest rates in the market across all fixed rate terms from six months to five years. However, customers must have a mortgage worth NZ$500,000 or savings of NZ$100,000 to qualify for a loan.

The three year fixed rate has been cut by 20 basis points to 7.09% from 7.29% , the four year rate by 24 basis points to 7.45% from 7.69% and the five year rate by 34 basis points to 7.65% from 7.99%.

HSBC's fixed term rate cuts follow ones by all the major banks either late last week or early this week.

Despite the fixed rate cuts floating rates remain significantly cheaper with most of the banks offering floating rates under 6%.

See all bank mortgage rates here.

All cuts are effective immediately, HSBC said. However, to be eligible for HSBC's offers, home owners need minimum combined home loans of NZ$500,000, or NZ$100,000 in savings and investments.

“These low rates, together with our already competitive six, 12 and 24 month rates, will give customers the ability to lock in market leading rates for the next six months to five years, providing them with certainty around their mortgage payments in an otherwise volatile market,” HSBC's private client manager Glen Tonks said.

HSBC said it offered customers a dedicated relationship manager, 24/7 banking and no ATM fees anywhere in New Zealand or the world.

HSBC's six month fixed rate is 4.99%, one year rate is 5.74% and two year rate is 6.74%.