HSBC has launched a new limited time, very low interest rate home loan offer.
For Premier customers, the offer is 3.85% fixed for eighteen months.
This is the lowest rate we have seen in the New Zealand market for more than 50 years, a multi-generational low.
HSBC’s standard fixed-term home loan mortgage rates for 1-year, 18-month and 2-year tenors are also currently market-leading.
HSBC has enhanced its reputation in offering low, sub-4% home loan rates. In fact this is the bank's fifth sub-4% rate offer since February 2016.
These low offers have seen its market share rise as customers respond to the aggressive pricing.
Winter is normally a time when mortgage market competition is restrained, so their timing is interesting in that regard.
This 3.85% p.a. ‘special’ home loan rate is being offered for a limited time to both new HSBC Premier customers and existing HSBC Premier customers.
To qualify as a Premier customer, new clients need to have a "combined home loan" of $500,000, or they need to have $100,000 in savings and investments at HSBC.
Existing customers qualify if they borrow at least an additional $100,000.
Minimum deposit and equity criteria also apply to both groups.
“Why wait for the spring mortgage campaigns if you’re wanting to buy a residential property, move house, or refinance an existing mortgage? ” said Glen Tonks, Head of Retail Banking and Wealth Management at HSBC in New Zealand.
Update: HSBC has also indicated a broader appetite for loans to residential housing investors. Previously, an owner-occupied residence was required as the basis of security, but they have now indicated more flexibility on this requirement.
HSBC’s standard fixed-term home loan mortgage rates for 1-year, 18-month and 2-year tenors are also currently market-leading.
See all banks' carded, or advertised, home loan interest rates here.
Here is the full snapshot of the fixed-term rates on offer from the key retail banks.
| below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at June 6, 2018 | % | % | % | % | % | % | % |
 |
4.99 | 4.35 | 5.15 | 4.55 | 4.99 | 5.89 | 6.09 |
 |
4.95 | 4.39 | 4.49 | 4.55 | 4.79 | 5.39 | 5.59 |
 |
5.35 | 4.39 | 5.05 | 4.55 | 4.99 | 5.89 | 6.09 |
 |
4.99 | 4.29 | 4.49 | 4.85 | 5.19 | 5.39
 |
|
 |
5.25 | 4.39 | 5.15 | 4.55 | 4.94 | 5.89 | 5.59 |
 |
4.80 | 4.29 | 4.45 | 4.55 | 4.89 | 5.39 | 5.59 |
 |
4.85 | 4.19 | 3.85
|
4.29 | 4.89 | 5.29 | 5.59 |
 |
4.99 | 4.29 | 4.59 | 4.55 | 4.99 | 5.49 | 5.55 |
 |
4.85 | 4.29 | 4.39 | 4.55 | 4.89 | 5.55 | 5.69 |
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB still has a 10-year fixed rate of 6.20%.
68 Comments
I talked to them last time, a month or so ago when they offered 3.95%. they very keen to get new customers, in the end my bank made it difficult to leave with a very good offer, luckily I didn't fix. This new rate by HSBC makes things even more interesting so I might switch.
Your too risky Cheese master.. Cheese needs to travel too far to stay fresh when exported from NZ..... also and as an aside, because I'm sure it doesn't relate to your cheese... there is.no way HSBC will touch negatively geared cheese with little equity.... They are far too clever for that -- they'll cherry pick the best.... not sure if you'll qualify...
Be careful what you say mate. Since you're scared about getting sued. Not willing to share a property address thinking you'll get sued but ready to say this about me without knowing anything about me. You want get sued for defamation haha. Your kids probably renting or working for me or renting and my taxes probably paying for your pension or you still skimming off the UK pensions (you really need to go back). You need to be banned from this site with all your bullshit stories. Can't believe you still here after a number of people proved you're an absolute bullshitter.
Also stop referring to HBOS, Northern Rock and bank of Scotland stories. That's history now and they were run by crook poms like you and not relevant for NZ.
Definitely an opportunity for FHB during the winter (at least) cool period for property prices.
Adrian Orr has commented that he sees property prices as being fairly stable in the medium term with a 2 to 3% pa future growth. Given all the speculation as to the future of the market, he/the RBNZ are the one person/organisation I would be listening to regarding this as they are the only ones that have some influence on the market (i.e. managing OCR and LVRs). It is not in the banks interest to see a "crash" in the property market due to the negative effect on the wider economy. Increasing property prices - such as during the GFC - give people as greater sense of wealth and a propensity to spend so is a stimulus effect to the wider economy (and a contributing reason as to why the NZ economy did well during the GFC). Equally, neither the RBNZ nor the government are keen to see the property market crash due to the negative impact on the wider economy.
The property market is likely to be subdued in the foreseeable future as the Auckland market is currently over-priced in terms of both rental yields (so investors are selling rather than buying) and the house price to income ratio.
So if a FHB is thinking of buying, it is not a case of trying to wait to pick the bottom of the market. The market may cool - especially during the winter period* - but the best buys will come from finding an individual property below market value from a vendor under a little pressure. The low success rates at auctions suggest that there will be some of these vendors (e.g. under pressure due to a shift or marriage breakdown). (* Written prior to the latest B&T figures just released – an expected trend.)
So given the future stability of the market, a good time for FHB to take advantage of good rates such as this, or use it rate to negotiate with their bank. While mortgage repayments may need a serious commitment now, the future for wage growth is really positive (e.g. yesterday's government announcement) so the pain is not likely to be long term with potential wage increases. There is some indication of future interest rates rising (e.g. USA) in the medium term, but a return to the historically NZ high rates of 7 to 8% seem a long way off.
So FHB, despite winter, the sun shines a little for you are feeling left out the past few years.
printer8 - The lack of honest commentary for FHB's has already suckered many of them into the debt trap. Annual reporting of year on year prices has meant that for the last half year the falls in values - pretty much everywhere have not been reported as anything other than slowing growth. When in reality - like Australia we are in the early phase of a crash and a FHB has far more to gain by delaying their purchase decision or bargaining very hard. You did read the Barfoot report I see, information that the ban sponsored mainstream media continues to hide from the public and it is only at places like interest.co.nx that the truth can be seen..
At some stage FHB need to get into the market.
When will the market bottom out? Agreed markets in other countries have seen falls of 5 to 10%.
What will happen to markets here?
Agreed as pointed in my comments, houses are over valued in terms of both potential rental yields and value vs income.
Is a substantial fall likely in the New Zealand market? Anybody can guess. However it is worth considering that Adrian Orr who has some influence on the market (OCR and LVR) sees house price inflation of 2 to 3% in the medium term; and the RB has a vested interest in ensuring that there is not a price "crash".
How do I personally feel? I see a 5 to 10% drop in the market followed by a period of price stability in most NZ regions (but not Auckland) as after the last boom 2002 to 2008.
So, I see some downside rather than the reverse.
So should a FHB wait?
Well, not all properties sell at the market price. Going back, in times when the markets were not booming (as over the period 2010/1 to 2016/7), property investors were looking for discounted properties (e.g. mortgagee sales, marital splits etc) where there was pressure to sell. I haven't heard the local property investors mention such sales recently, but expect so over the next few years.
My argument is that for FHB, I don't see any substantial crash (due to RBNZ influence) and that as interest rates are currently low, look for that house that they can get below market value.
Remember that FHB buying a property is not all about $$ short term as for a property investor; it is as much about intrinsic value and long term. A short term 5% - or even 10% - drop is not important as long term prices are likely to rise. As I have previously said on this site; find the ideal property, avoid agent speak and bargain hard (e.g. remember 70% of properties are not selling at auction i.e. vendors bottom their minimum price).
The risk for FHB is not house prices - rather the ability to service their mortgage. In the medium term, interest rates are likely to rise, but so to are the indications that there we are likely to see wage rises across many sectors.
Finally, I would like to think that the NZRB prediction on the house market is a little better researched and reasoned that an individual's gut reaction.
I can agree that FHBs may be able to pick up some bargains over the winter and if they are going to live in that house for a long period the risk is reduced .......... providing they can positively answer the following questions positively
- how secure is my job and will it survive a recession
- Will I be able to cover my mortgage adequately if the interest rates were to double
- If I buy now and prices continue to dip another 20% how will that make me feel
Further questions for a First Home Buyer to ponder:
- can I cope with the stress of these unknowns
- can I compete with investors chasing the same property I want, it's probably a lot easier to give up now
- if I bag a "bargain", maybe it wasn't actually a bargain, it could be a scam by the investor or homeowner vendor to offload their property before the market dips as they probably know more than me about what will happen
- will I be alive tomorrow, I may die during the night
As I commented on the initial thread, the property Nic refers to is in the Wellington region. Went unconditional approximately 3 weeks post mortgagee auction, where was passed in at 710K. The bank was reluctant to accept large short fall, but eventually had to face reality that 775K was the best they could get at the time.
MJA, you are talking BS as well as Nic Johnson.
So Nic Johnson lives in Wellington as he went to the auction.
MJA what is the address of this property in Wellington then and how do you know that is what he is talking about unless you are a mate of his and trying to cover up,on his BS as he has never said the place was in Wellington.
The Wellington market is good so why the big loss, you are talking BS as well!
I do not know Nic, but do know the property. Low sales price as concern as still occupied by defaulting mortgage holder, and the property had not been maintained. The property was basically purchased for land value, flat 2 acre site with native bush, on town services with 45m street frontage.
So Nic Johnson went to the auction in Wellington did he?
You can confirm that over a million dollars was lent on that property and sold for 775k
What was the address of this property and I will check the facts are true as MJA said.
You are covering up for someone with BS!
Evening gents... Cheesemaster and George Gregan (THE MAN #2) I had no idea that you were still focussed on yesterdays story, I've been waiting for you on the Barfoot and Thompson crash page...... feel free to join me there, There is an invite set up for your comment, Ecobird, Double GZZZ,,,,, TTP are all absent so far.. Come and join us there... real stats, a timeline,,,, some pain for some but fun for others its like watching Love Island!
Hey Cheesy... come and join us on the Barfoot and Thompson 8.9% off the market since last March 2017 page....... bring THE MAN with you... Lets discuss all things openly.... and don't hide.. every time you speak there I am happy to respond...... man to man Cheesy? LET'S TALK CRASH TOGETHER!!!
It is not in the banks interest to see a "crash" in the property market due to the negative effect on the wider economy. Increasing property prices - such as during the GFC - give people as greater sense of wealth and a propensity to spend so is a stimulus effect to the wider economy (and a contributing reason as to why the NZ economy did well during the GFC). Equally, neither the RBNZ nor the government are keen to see the property market crash due to the negative impact on the wider economy....................................
That's almost like saying that the health, vitality, and prospects of the NZ economy all hinge on the price of houses. I'd imagine the Hosk could use this material after a bit of a rewrite.
Many here are hoping for a crash (and don’t realise that hoping it so doesn’t make it so) because they are either bitter or think it will enable them to get onto the property ladder for cheap. Completely disregarding the fact that the economy would be in ruins, banks wouldn’t be lending, and they may even be out of a job.
but the best buys will come from finding an individual property below market value
There is no such thing as 'below market value'. Any transaction that involves a buyer and a seller IS market value. What I suggest you mean is that a buyer should try to pick value in a property that no one else sees - and that, is a risky business!
Come on!
A valuer will give you a market value, but a property will most likely sell over or below that.
Talk to any long term property investor; they are not going to pay market value. In previous subdued market periods you would see property investors flocking to mortgagee sale, marital splits, estates.
With the booming market over the period 2010/1 to 2016/7, buyers bought knowing that if they paid slightly over the top it was not important. With a subdued market, a little more care and being selective is required.
Always go floating if you can pay down more per week.
Failing that, negotiate to secure a clause that enables you to pay a lump sum off your fixed term every 6 months, then save like hell and pay off quicker.
They say rent money is dead money. Paying interest to the bank is the same.
And possibly get paid by the new bank for doing so .
My question is , as this is not available to existing customers unless they borrow more , what happens at the end of the 18 months ?.Are you then an "existing customer" , and have to go back to standard rates, or do you qualify for whatever special rate replaces it ?
All well and good provided the market stays liquid. All bets are off if rates go sky high and the big 4 close rank taking away your ability to shop around. HSBC were 9%, prior to the rbnz wholesale rates cut. They then held fixed rates artificially high locking customers in. Good luck on your $1m mortgage.
When is soon? Do you guys ever give up even when presented with a real facts like this HSBC deal? The banks are in the business of lending, they can't make money if they don't lend. They have eliminated the high risk developers and good developers also struggling to get funding. They can only lend for existing houses then. The supply side is getting absolutely constrained now other than this dumb Kiwibuild. Anyone with good job and 20% deposit will have no trouble getting funding right now for existing houses.
Not if you know the area properly. The biggest gain on a single property I ever made was house unseen just saw section and house from Google Earth from the internet in Mt Eden (wasn't on the market). I knew the area was going to go gang-busters one day due to proximity to city and good schools. Made a killings but kicking myself for selling in 2016. Prices are still going up there and finding difficult to get a good property on a decent size section in that area now.
On the Barfoot and Thompson page where the losses since last March have been 8.9% from peak - a 'no brainer' would be anyone who had bought into the bubble since then..... But I guess you'd have to be heavily committed or as you say THE MAN 2 ' a no brainer' to still want to promote that and keep gearing yourself up.... ..
'due to knowledge' 'never fallen on your face yet'.... a two year olds hands will go out in front of them so they don't fall on their face......................... But I wouldn't ask a 2 year old for investment advice.... nor would I ask you THE MAN #"2.0... (that means 2).... Now ask yourself if you want to carry on posting idiocy of just disappear quietly into the ignorance???? I've been nice so far...
HSBC show exactly the way a single product bank retailing an increasingly commoditised product should operate - no branches or ATM networks, don't waste money on vanity projects (sponsoring bowles clubs or startup incubators), don't service customers with small portfolios as you'll end up incuring the same service costs to collect less revenue. Focus on just one thing (value lending in the case of HSBC Bank) and do it very well, be obsessive about a single core product. New Zealand banks should consider their business model.
'Don't ever worry about HSBC ,,,, they'll lend over half a mill of debt providing you have twice that much in assets if the shit hits the fan..... If you are a good prospect, they'll treat you very well and cherry pick you as a customer... I have benefitted from being with them for over 20 years... no complaints.
Dear George.. Nothing I have written has ever been deleted... I see you are still running around the sand dunes finding something high enough to pee against..... Would you care to join me on the Barfoot and Thompson 8.9% crash page where I have been awaiting your response, worthy or otherwise???
Its still there 'George Gregan' THE MAN 2.. you're just on the wrong thread, not the first time though eh?. Do you really want to go back there, because I didn't think you came across as being particularly bright, having just re-read it again.
Why is this one auction failure bothering you so much? Have you seen todays story on Auction results from B & T. They had a high court auction that failed there last week too... Which means no bid near the level of the mortgage, in case it needs explaining. These will not be isolated events George... There will be loads of them in the months ahead as the specu-debtors that have to sell the family home realise that there are very few buyers prepared to pay last years prices for their silly decisions
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
Arise all you people, A rise. Pride comes before a fall.
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