HSBC Australia head of mortgages John Lane said significant cuts by the Reserve Bank in the last few months and movements in the cost of funds has allowed HSBC to offer a combination of an historically low introductory variable rate and significantly discounted fixed rates.
HSBC also said they are discounting their three to five year fixed home loan rates.
Calculations for comparison home loan interest rates are based on a designated amount of $150,000 and a term of 25 years.
The Reserve Bank of Australia opted to leave official interest rates unchanged when they last met in March. In a sign that the economy may be showing signs of a recovery the RBA left official rates at 3.25 per cent.
Following four consecutive rate cuts which saw the official cash rate slashed by 400 basis points and home loan interest rates cut by almost as much, the bank opted to leave rates on hold.
Home loan interest rates have traditionally lowered when the official cash rate has been cut. Although not all lenders passed on the previous RBA rate cuts in full, most lenders passed on most of the previous cuts, pleasing home owners will a variable rate mortgage and saving them hundreds of dollars a month in mortgage repayments.
The RBA meet again on April 7 to discuss interest rates.