HSBC has today announced that it will be dropping its two, three, four and five year fixed home loan rates, with immediate effect.

The new two year rate is 5.87%p.a. - a reduction of 23 basis points and a market leading rate among major banks*. The three year rate is 6.40%p.a. - a reduction of 10 basis points, the four year rate is 6.80%p.a. - a drop of 25 basis points and the new five year rate is 7.29%p.a. a reduction of 15 basis points.

In addition to dropping the fixed home loan rates today, HSBC is still offering customers the ability to further reduce any of their fixed home loan rates by up to 1%p.a. by taking out certain insurances with the bank.

John Barclay, Head of Retail Banking and Wealth Management, at HSBC says: "With the European debt crisis in full swing a number of investors are looking for financial certainty in areas they can control - such as with their home loan, which is why fixed rates can be so attractive to them at the moment."

"Ahead of pending interest rate rises, we have also found that a number of HSBC Premier customers want to keep their options open so they are fixing a portion of their home loan and keeping a portion floating - just another reason why fixed home loan rates are currently so popular," continues Barclay.

In order to become an HSBC Premier customer individuals need to qualify with either a minimum combined home loan of $500,000 or $100,000 in savings and investments.

In addition to competitive home loan rates, HSBC Premier customers receive an individual relationship manager service, access to ten different multi currency transaction accounts and also pay no ATM fees in New Zealand or at any HSBC ATM anywhere in the world. They have access to instant emergency cash advances of US$2,000** and the ability to transfer money internationally between their HSBC accounts within 30 seconds for no fees***.

Various rewards are also made available through our Premier Rewards programme, such as additional luggage allowances when travelling abroad and exclusive use of business lounge facilities for customers.