HSBC lowers 2 year fixed rate home loan
Article by Rebeccah Elley
HSBC Bank has reduced its 2 year fixed rate home loan to 4.58% for all new borrowings over $50,000, making it the lowest 2 year fixed rate mortgage available in Australia among retail banks.
HSBC’s head of mortgages Alice Del Vecchio said a recent drop in the cost of funds gave the bank the opportunity to pass on these benefits directly to customers. “We are thrilled to announce this market-leading rate, which is currently below any other published 2 year fixed rate available."
According to Mozo’s comprehensive home loan database, the next best is eMoney's 4.65% (Plus Full Doc), then Newcastle Permanent's 4.69% (Fixed Rate Home Loan) and the lowest out of the Big Four is the Commonwealth Bank’s (Fixed Rate Home Loan) 4.84%.
HSBC customers have the ability to make up to $10,000 extra payments every year, as well as split applications across the bank's fixed and variable rates. "The ability to make additional payments is attractive as it offers the security of a fixed rate but also the flexibility for additional repayments if extra money becomes available," said Vecchio.
“We also know our customers prefer a combined loan approach and so we are offering competitive variable rate pricing to complement the headline fixed rate."
Customers need to apply by 18 July and settle 19 September to be applicable for the competitive 4.85% interest rate. After the two year fixed rate period ends it will revert to HSBC’s standard variable interest rate.