An aggressive new rate meant it was aiming at customers of the major lenders in New Zealand.
``The bank is focusing on quality customers and can access its wholesale funding globally, remembering New Zealand has some of the highest interest rates in the world.''
The Hongkong and Shanghai Banking Corporation could use its global funding to help fund the mortgage lending it was trying to increase, he said.
HSBC yesterday lifted the stakes in New Zealand's mortgage lending market by offering a 3.87% loan for an 18-month fixed term.
HSBC New Zealand chief executive Chris Russell said it was the only home loan being offered in the New Zealand market below 4% and was lower than the 3.95% rate for the same period the bank launched in February last year.
Mr Russell claimed the 3.95% was, at the time, the lowest residential mortgage rate in the market for more than 50 years. The new rate now became the lowest rate in 50 years.
The Reserve Bank kept is official cash rate unchanged last week at 1.75% and economists are picking late next year at the earliest for a possible change.
The change has just as much chance of moving down as up.
HSBC offered the new rate to celebrate its 30 years of operation in New Zealand, Mr Russell said.
HSBC's standard fixed-term home loan mortgage rates were now the lowest in the market across the board, from a one-year term to a five-year term.
The special home loan rate was being offered for a limited time to new HSBC premier customers and existing premier customers who borrowed at least an additional $100,000.
To qualify, customers must provide an owner-occupied property as all or part of the security. Minimum deposit and equity criteria also applied.
An individual could qualify to become an HSBC premier customer either through a minimum combined home loan of $500,000 or $100,000 in savings and investments with HSBC.
HSBC increased its one-year term to 4.19% and the BNZ dropped its two-year term to 4.69%, down 0.6%.
Mr McIntyre said mortgage rate changes were expected to come more frequently as wholesale swap rate start rising again. More rises were expected now the United States Federal Reserve's interest rate tightening cycle was starting to take effect.
Another rate rise was expected in the US before the end of the year, he said.
