There's more to a home loan than the rate
HSBC has launched a special 3.95% mortgage rate for premium customers in New Zealand — but experts have warned consumers to look out for “fish hooks” in the deal.
HSBC set out its market leading rate on 2-year fixed-term home loans last week. The 3.95% offer is available for Kiwis who qualify for an HSBC Premier Account. Customers need to have $100,000 in savings or investments, or $500,000 in home loans to qualify for HSBC Premier.
The sub-4% rate stands as the lowest headline rate in New Zealand. It is 44bps lower than the next cheapest 2-year loan, the TSB Special at 4.39%. The HSBC rate is 3.3% cheaper than Heartland’s 2 year rate. HSBC is set to kick off a marketing campaign behind the offer in the coming months.
Despite the attractive headline figure, mortgage experts have called on customers to consider other factors when they weigh up the deal. Advisers say the offer does not have a strong cashback component, and only covers lawyers’ costs. HSBC’s offer is also limited to owner-occupied properties and is only available direct.
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