HSBC joins fray with sub-4% mortgage deal
A third bank has joined the fray in offering a sub-4 per cent fixed term mortgage rate and this time borrowers can lock it in for three years.
HSBC has launched a 3.95 per cent rate on a fixed term of either one, two or three years, piling in with Westpac and Kiwibank to offer low rates.
Westpac reignited a mortgage war in mid-January, offering a one-year fixed term rate of 3.99 per cent — down 16 basis points on its standard rate of 4.15 per cent.
The offer was meant to end on February 1 but a spokesman said it had now been “extended until further notice”.
Meanwhile, Kiwibank has a two-year fixed term rate special of 3.99 per cent which is due to finish on February 11.
The HSBC rates are only available to new customers who have a home loan of at least $500,000, existing customers who borrow another $100k or those with savings and investments of $100k with the bank.
Chris Russell, chief executive of HSBC New Zealand, would not put a timeframe on how long its special would run.
HSBC typically ran a rate campaign at this time of year and Russell said it was hoping to stimulate demand in a “softening market”.
“We certainly are seeing a softening in demand.”
Russell wouldn't give specifics but said in terms of the overall percentage, the decline compared to last year was “meaningful”.
“I think there is certainly a bit of looking over the shoulder to the Australian market and wondering if it will happen here.”
Sydney and Melbourne house prices have fallen in recent months.