This is an introductory rate - for 12 months and then back to standard variable(5.84%) or Home Value Loan(5.23%), plus exit fees applies if you decide to switch bank after 12 months.
This brings HSBC's current standard variable rate to just 3.99%p.a. (comparison rate 5.02%p.a.~). With this rate, you could save thousands and pay off your loan faster.
Just for 12 months though - that should be in the description
updated, just thought "introductory rate" is already a self-explanatory term, but I guess not for the first timers.
I'm not sure this is really a bargain at all. If it was a no strings attached 3.99% variable rate, then it would be a fantastic bargain. But it isn't - the 3.99% comes with a whole raft of conditions. When you take the conditions into consideration, this is an average deal.
true — but this would probably look like a BARGAIN to punters who fixed their home loans a few years ago. :-P
the HSBC bank offer comparison rate is 5.02%, then revert to a rate of 5.29%
St George Basic Home Loan standard rate of 5.27%pa compares favourably with this
(most banks set rates as a number of percentage points over the reserve rate).
or for example non-bank lenders look at Mortgage House Pure Basic 4.95%pa.
you should always factor in the exit fees in any loan, many of lenders load their exit fees as eg. a $500 fee (+ in the small print) %2 of the loan amount. supposedly banks have lower exit fees, but then you'll have to add their ongoing monthly fees.
a good place to compare the loans available is: http://www.infochoice.com.au/
Correction:
HSBC Special (Introductury) Rate is 3.99%, Comparison Rate is 5.02% for ONE year ONLY.
After that, you will revert to HSBC Standard Variable Rate at 5.84%, Comparison Rate is 5.90% AFTERWARDS.
Mind you that big banks have a lots of FEES …. Establishment, Redraw, Monthly, Discharge, Prepayment, Settlement, etc etc…
Agree with kristo to go to http://www.infochoice.com.au/ to find the RIGHT deal for you.
Correct me if I am wrong, thiss site does not compare introductory rates(neither does infochoice). the lowest shown on the site is MyRate – Advantage Rate Loan 5.03%.
I would love to know anysites that shows you all the available introductory rates, so I can keep an eye on re-financing.
dayum cheapppp