RFi Group data shows that borrowers who are likely to refinance their current mortgage would do so to access lower interest rates. Although interest rates are the greatest driver for refinancing among New Zealand mortgage holders, many of the big banks in New Zealand hiked up fixed and variable interest rates at the beginning of 2017. Banks explained the interest rate hike as a result of rising wholesale funding costs.
In contrast to the large banks HSBC has announced its fixed owner occupied interest rate will be dropped to 3.99% for 18 months. The rate is just shy of the record low rate of 3.95 percent offered by HSBC this time last year, and is the only mortgage rate currently under 4 percent per annum in New Zealand.
The rate is just shy of the record low rate of 3.95 percent offered by HSBC this time last year, and is the only mortgage rate currently under 4 percent per annum in New Zealand.
An HSBC spokesman has said that the rate was not a loss leader for the bank and unlike other banks HSBC was less reliant on wholesale funding. "We are keen to grow our mortgage business here in our target mass affluent market segment, and the HSBC Group continues to be supportive of our business in New Zealand."
Source: RFi Group New Zealand Mortgages Council Sep-16