Talk Money: February 18

Tony Field (Paul Henry)

HSBC is offering what it says is the lowest mortgage rate in New Zealand in over fifty years.

It is promoting a rate of 3.95 percent for 18 month loans to its "premier" customers.

That is lower than the 3.99 percent offer that SBS Bank put into the market for a limited time late last year.

There are strings attached. Customers must have a twenty percent deposit and have their salary paid into an HSBC account.

They also need a minimum of $500,000 in home loans and / or savings and investments of $100,000.

But it is a sign that competition is heating up again in the mortgage market.

Advisors say the banks are prepared to offer discounts to their advertised rates.

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