HSBC has dropped its one-year fixed interest home loan rate by 36 basis points to 5.29%, saying it is the lowest fixed term mortgage rate offered by any bank in New Zealand for at least a decade.
The bank on Sunday also lowered other fixed rate mortgages by between 10 and 30 basis points.
The bank says its two- and three-year rates, at 5.77% and 6.07%, respectively, are also the lowest of the major banks.
HSBC's head of retail banking and wealth management says national home sales volumes rose 25% in January this year compared with January 2011, indicating the housing market is on a markedly positive trend.
John Barclay says the bank can maintain the new rates, as long as the Reserve Bank keeps the official cash rate at its current level of 2.5%.
However, Mr Barclay warns rates this low may not be so viable in the future.
