BNZ has cut all its fixed mortgage rates as drops continue in the wake of last week's fall in the Official Cash Rate (OCR).
It has also announced it is moving to a single set of fixed home loan rates, instead of offering different rates to those with 20% equity to those without.
Previously there was a .60% difference in the rates.
Low equity premiums will still be applied based on the individual customers’ equity positions.
"The simpler home loan rates mean that all customers will be able to access our best home loan rates, even if they don’t have 20% equity," said BNZ's executive customer products and services Karna Luke.
Its new rates included 6.55% for one-year, 5.99% for two-year and 5.89% for five-year.
The Reserve Bank lowered the OCR to 5.25% six days ago, the first time it had fallen in four years.
All the major banks responded by lowering some of their mortgage rates — yesterday, ANZ dropped its one-year and 18-month offerings.
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