HSBC NZ launches its lowest ever mortgage rate, but only for owner-occupiers who are HSBC Premier customers

And so the price war begins......
At least someone is passing something on to the general public!

Wow , how do they do this ?

Their funding mix must have a shed-full of overseas deposits at very low rates.

I see a report on BLOOMBERG that the big UK banks are getting ready to domicile their head offices outside the UK (London ).

We should be really cheeky and offer them incentives to set up their head offices right here in Auckland .

Now that will get us off the low wage rung which has held us back

Any particular reason you can't call out said bank (9k and rate info), I'd be keen to knock on their door!

At least it's only for owner occupier.....

Give it another year, I'm sure we'll be looking at rates of 2.5% for mortgages.

Er, that would indicate Td rates of 1.5% for 2yrs and savings rates of... Well, if we're lucky, they won't charge us. Let's hope you're wrong

Awesome rates HSBC! We left an Aussie bank earlier this year for
HSBC and while their digital platforms and customer service are from the dark ages that is irrelevant when my mortgage repayments have literally halved. The big four are like a cartel seriously someone should investigate their often similar front desk approaches when customers are shopping around for a mortgage - it's surely anticompetitive- none in the big four will go sub 4%, all offer cash but bonded to a set year to loan size ratio but no problem for HSBC to bring first world interest rates to NZers.

- This is all interesting reading . Having previously worked for one of those large Australian banks for over 30yrs, it continues to amaze me, that the population of property owners who bank with these firms, continue to accept the cash payments for moving your mortgages to them and inevitably between them. The banks offer cash towards solicitors costs or simply a cash contribution and you all will have supposedly signed an acknowldgement that if you refinance in 3 yrs you will be required to pay this back. The payback, I believe isn' t really an issue ,because your next anticipated bank cash payment will probably cover the payback of the last one you got. The cash contribution the bank pays you compared to what they will take off you over a 25yr term is laughable. Best way to beat a ban,k is start minimising the interest dollar they are taking off you. Start trying to pay off as much or as little in additional principal payments that you can. Every dollar off a loan balance for as long as possible allows you to avoid paying more interest on interest in the long run. Start giving it a go and stop grizzling about interest rates and do something about the level of interest dollar they charge you. The banks make interest on your interest in your mortgage.

Does it mean the fixed loan rates are going to go down soon some more ? The overseas funds have become cheaper or what ? Or Banks incorporated overseas have an inherent advantage, because of the funds they can command there ?

Sorry, don't agree that paying off debt is the correct thing to do in some instances!
There is good debt and bad debt.
Providing the debt is purchasing assets that are producing more income than you are paying in interest then
You are going forward.
Leveraging is the only way to go when you are getting returns of 8 to 10 per cent and you are not having to put
Any of your own money in.
The worlds financially most successful would agree with me.
However if you are negatively geared then yes pay off the debt as quick as unless you have got better use for the money.

-Solardb: If you have a normal table mortgage based on a repayment of Principal and interest with a frequency of Fortnightly or Monthly , you will see when you make the loan payment into your loan account your loan balance will reduce by that payment. The next thing you see, will be the amount of interest come out of the loan account which goes to the bank and accordingly you will see your loan balance increase by the amount of that interest calculation for a fortnight or a month . I.e. The loan balance less your payment plus the banks interest will equal your new loan balance. The bank calculates interest based on your loan balance and that loan balance now consists of the interest amount they just debited to your loan account. So if you had a $100 loan and your payment was $10 and of that $10 , $2 was interest. your loan balance after your payment would be $92. The bank begins calculating interest on the $92 not the $90. I hope that helps :-).

- There are a few ways of avoiding that interest on interest but for some it can prove quite tough based on the level of payment or the type of loan you need to put in place. Hence the comment if you can reduce that table mortgage loan balance as much or as little as possible and keep it that way and as often as you can your interest dollar cost in the long run can be greatly reduced.

- There are a few ways of avoiding that interest on interest but for some it can prove quite tough based on the level of payment or the type of loan you need to put in place. Hence the comment if you can reduce that table mortgage loan balance as much or as little as possible and keep it that way and as often as you can your interest dollar cost in the long run can be greatly reduced.