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Kiwibank has cut its one-year fixed mortgage rate to a five-year low of 5.99%.
Kiwibank has also reduced all other fixed home loan rates: its six-month rate is now 6.49% and all other fixed terms are 6.99%.
Chief executive Sam Knowles says the home loan market is very competitive and the bank is determined to have the best rates available.
The rates are effective immediately.
The drop comes after ANZ and National Bank dropped their fixed-term mortgage rates last Thursday, with three, four and five-year fixed rates dropping to 7.10% - a fall of between 0.10 and 0.89%.
Both banks have adjusted their new two-year rate would to 7%, down 0.20%.
The next OCR announcement is scheduled for January 29. It was last adjusted on December 4 when Reserve Bank Governor Alan Bollard slashed the OCR by 1.5 percentage points, taking it to 5%.
BNZ economists are predicting a cut of 75 basis points, taking the rate to 4.25%.
