HSBC  has launched a 3.95 per cent home loan rate, which it claims is the lowest offered in New Zealand for over 50 years.

The new rate applies to the bank's fixed 18-month loan.

Like all home loan 'specials', it comes with several strings attached.

It is only available to HSBC Premier customers, which requires a mortgage of at least $500,000 or minimum savings and investments of $100,000.

In addition, customers will need at least 20 per cent equity, and have their salary credited to an HSBC account.

The United Kingdom-based banking giant has also cut its six-month, two-year, three-year and four-year mortgage rates.

HSBC's New Zealand head of retail banking Glen Tonks said the bank had been offering highly competitive home loan rates for several years.

"I would like to reassure people considering refinancing with HSBC down the track that we are committed to continuing to do so."