HSBC slashes fixed-mortgage rates for high-end clients

The New Zealand branch of HSBC is slashing its two-, three- and five-year fixed-mortgage interest rates for its high-end customers and said it is the lowest interest rates available from a bank in the country.

The two-year HSBC Premier rate has been cut by 25 basis point to 6.49 percent from the previous 6.74 percent, the three-year premiere rate by 10 basis points to 6.99 percent from 7.09 percent, and the five-year rate by six basis points to 7.59 percent from 7.65 percent.

The six-month rate, on the other hand, has been raised by 50 basis points from the current 4.99 percent to 5.49 percent. However, the new rate is still below the six-month rate in the market, at 6.25 percent.

High-end customers are defined as those customers who have a minimum combined mortgage of $500,000, or savings and investment of approximately $100,000.

John Barclay, head of personal financial services at HSBC, reflected the current condition of the housing market in New Zealand and said the country is “officially out of the recession, and we’re seeing a gradual increase in the number of buyers at the premium end of the market wanting to purchase property – particularly now that the weather is starting to warm up.”

He added that those “who are looking to buy, a number have expressed a strong preference for fixed rates – especially with the uncertainty in the market. This is about providing them with the competitive rates they are after.”