New carded rate offers from HSBC set them 10 to 30 basis points below any other home loan rival, making HSBC an attractive and unique comparator

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HSBC is back, reclaiming the low rate position for all mortgage rates for fixed terms of 1 year and longer.

After raising its 3.85% eighteen month rate to 4.19% about two weeks ago, it has reset its who offer card lower again.

Now it is offering carded rates for one year and 18 months fixed at 3.99%.

This is the lowest rate offer in the home loan market at present.

HSBC has trimmed -10 bps from its two year fixed card, setting their new rate at 4.19%, also the lowest for this term in the current market.

The same it true for three years fixed (down -20 bps to 4.69%), four years fixed (down -30 bps to 4.99%), and five years fixed is now at 5.29%, also a reduction of -30 bps.

These changes are the first for any bank in the past month (HSBC’s 4.19% change excepting).

Wholesale swap rates have been very stable recently, although in the past few days we have seen a steady small set of across the board falls, resulting in a bear steepening on the rate curve (that is, the shorter terms have fallen more than the longer terms).

It is unlikely however that HSBCs August cuts are motivated by these moves. More likely they are taking advantage of these conditions and their low cost base to press their competitive advantage in mortgages to grow market share. HSBC’s market share is small but their mortgage book has grown noticeably as a result of their uniquely low interest rate pricing.

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

Here is the full snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR6 mths 1 yr 18 mth 2 yrs  3 yrs 4 yrs 5 yrs 
as at July 9, 2018%%%%%%%
        
4.994.295.154.494.855.855.99
ASB4.954.294.394.494.795.395.59
5.354.295.054.494.855.896.09
Kiwibank4.994.19 4.394.855.195.39
Westpac5.254.295.154.494.855.895.59
        
4.804.244.454.494.855.395.59
HSBC4.853.993.994.194.694.995.29
HSBC4.994.194.494.494.855.395.55
4.854.244.354.494.855.555.69

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

And TSB still has a 10-year fixed rate of 6.20%.

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