heck out the article below from Stuff today. Reading the article, you may think this deal cannot be true which it is but it has some hooks in it. This is common for most mortgages at present, so by using a Mortgage Broker you can take the guessing out of the equation and they can figure out what mortgage offer is best for you in your circumstances. HSBC is offering a market-leading home loan interest rate - but only to a select few. To mark 30 years in New Zealand, it has advertised a 3.87 per cent per year interest rate for an 18-month term. It is believed to be the lowest rate offered in 50 years. It is the only rate available below 4 per cent in New Zealand but is only available to new HSBC Premier customers, or existing ones who borrow at least an extra $100,000. They must have their own home as all or part of the security. HSBC head of retail banking and wealth management in New Zealand, said the bank was getting three inquiries a minute about the offer, which was "above expectations". Customers can become premier customers if they have a home loan of at least $500,000 or $100,000 in savings and investments. Infometrics forecaster Gareth Kiernan said it was better viewed as a one-off promo than a sign of the probable direction for interest rates. "Wholesale rates have been pretty steady since about May/June, having eased back from the Trump-induced spike in late 2016, while the Reserve Bank's estimates of bank funding costs have also been steady," he said. "In other words, the wholesale market offers no indication that mortgage rates are about to start trending down again. "Banks remain reasonably tight in terms of their willingness to lend, so even though sales volumes in the housing market continue to slip, there is limited competition among the banks to attract new lending. HSBC might be slightly more able to compete given that it won't be under the same pressures from APRA and Australian parent banks to limit its exposure to NZ and our housing market in particular." Tonks agreed that interest rates were generally heading up but HSBC wanted to offer customers a competitive offer, New Zealand was a strategically important market for growth, he said. Tonks said the offer was likely to last "weeks, not months". Massey University commentator David Tripe said some borrowers would be caught out by the need to have a $500,000 mortgage. But he said, if he were in the market for such a loan, he would think the rate was worth considering. "Even though I know I'm going to have to pay more than that when it rolls over." Source; www.stuff.co.nz Leave a Reply. |
James Twiss
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Greg Roberts
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September 2020
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