HSBC claims it's offering the lowest mortgage rate in 50 years of 3.95 percent, fixed for 18 months.
The 'special' offer is for HSBC Premier customers who have a total loan of $500,000, or $100,000 invested with HSBC.
Customers would also have to have 20 percent equity in their home and have their salary credited to an HSBC account.
It's only the second time there's been a mortgage rate less than 4 percent. Late last year, SBS bank offered 3.99 percent for a limited time.
It could put pressure on other banks as customers renegotiate.