HSBC drops a mortgage rate below 4% with new 18-month "special" offer

HSBC is offering a 3.99% per annum “special” interest rate on 18-month home loans.

The only residential mortgage rate currently under 4% from a New Zealand bank, is available from today (Friday). It’s on offer to new HSBC “premier” customers and existing HSBC premier customers who borrow at least an additional $100,000.

To qualify for the offer, borrowers must provide an owner-occupied property as part of the security. The bank’s minimum equity and deposit criteria apply.

An HSBC premier customer must have either a minimum combined home loan of $500,000 or $100,000 in savings and investments with HSBC.

“With market uncertainty having increased in recent times, we are pleased to be able to provide our owner-occupier customers with certainty over the short-to-medium term with this 3.99% p.a. 18 month-fixed mortgage offer,” Glen Tonks, HSBC’s head of retail banking and wealth management, said.

The 18-month special is available for a limited time, HSBC says.

See all banks’ advertised, or carded, home loan interest rates here.

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.39 5.05 4.79 5.49 5.70 5.85
ASB 4.59 4.75 4.79 5.09 5.49 5.69
4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.45   4.79 5.25 5.65 5.85
Westpac 4.59 5.05 4.79 5.09 5.69 5.49
             
4.55 4.70 4.85 5.25 5.55 5.75
HSBC 4.19 3.99 4.39 4.89 5.29 5.59
HSBC 4.45 4.75 4.75 5.09 5.45 5.69
4.45 4.75 4.75 5.05 5.45 5.50

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

TSB Bank has a ten year fixed rate of 5.75%.