HSBC is lowering one, two and three-year fixed-term home loan interest rates to 5.85%.
The move, for the bank's Premier customers, sees the three-year rate cut 40 basis points to what's the lowest carded, or advertised, three-year rate from any bank.
The 5.85% one-year rate is a 10 basis points drop, and the new two-year rate a 14 basis point cut.
HSBC says the one to three-year 5.85% rate will be offered for a "strictly limited" time to new Premier customers, and existing Premier customers who borrow an additional NZ$100,000 or more.
Borrowers must also have a deposit or equity equivalent to at least 20%.
“We are excited to bring this market-leading winter home loan offer to our customers to mark the global relaunch of the HSBC Premier offering locally,” Glen Tonks, HSBC's head of retail banking and wealth management, said.
“These options mean that our Premier customers can get the fixed rate tenors that work best for them at very competitive rates, and recent discussions indicate that many customers are now considering longer term fixed rates.”
The bank says every Premier customer has a dedicated local relationship manager, pays no fees at ATMs of any bank in New Zealand, can get commission-free foreign currency exchange at any HSBC branch worldwide, and can transfer money internationally between their HSBC accounts free of charge.
To become an HSBC Premier customer you need either via a minimum combined home loan of NZ$500,000, or NZ$100,000 in savings and investments with HSBC.
See all banks' carded, or advertised, home loan rates here.
This is how the updated HSBC mortgage rates compare as at 1:00 pm Wednesday, July 16, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
6.05% | 6.25% | 6.09% | 6.65% | 7.15% |
 |
5.95% | 6.30% | 6.40% | 6.65% | 6.99% |
 |
5.99% | 6.25% | 6.39% | 6.25% | 6.99% |
| Kiwibank | 5.99% | 6.29% | 6.29% | 6.95% | |
 |
5.95% | 6.30% | 6.39% | 6.65% | 6.99% |
| Co-op Bank | 6.00% | 6.00% | 6.00% | 6.25% | 6.89% |
 |
5.85% | 5.85% | 5.85% | 6.99% | |
 |
5.85% | 5.99% | 6.20% | 5.95% | 6.79% |
| TSB Bank | 6.00% | 6.05% | 5.80% | 6.60% | 7.00% |
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