HSBC, KiwiBank, slash mortgage rates

While 194 HSBC Swiss bank accounts and 110 clients in the files were linked to this country, the consortium named one. Photo / AFP

As competition in the mortgage market continues to heat up, HSBC New Zealand has slashed its fixed home loan rates to a flat rate of 5.29 per cent.

The rate applies across the bank's one, two, three, four and five-year fixed rates.

It is the lowest rate in the market for all of those terms, apart a one-year rate from SBS Bank of 5.19 per cent, according to interest.co.nz.

Glen Tonks, head of retail banking and wealth management at HSBC New Zealand, said the offer was made possible by the current interest rate environment.

"This offer gives New Zealanders a unique opportunity to structure their home loan to meet their individual needs at a single competitive interest rate," Tonks said.

HSBC said the special rate of 5.29 per cent would be on offer for a limited time and was available to new HSBC Premier customers, as well as existing HSBC Premier customers who borrowed an additional $100,000 or more.

To qualify, customers must have at least 20 per cent deposit or equity and have their salary credited to a HSBC transaction account, the bank said.

Meanwhile, KiwiBank today said it was cutting its three, four and five-year mortgage rates to 5.55 per cent, 5.99 per cent and 5.79 per cent, respectively.

ASB also announced it was cutting its five-year fixed interest rate special to 5.75 per cent its two-year fixed rate special to 5.39 per cent.

Earlier this week ANZ announced new one and two-year specials of 5.39 per cent and a five-year special of 5.89 per cent.