The largest drop is a 20bps cut to its six-month special (5.09%) and standard (5.99%) rates.
Special rates apply to those with a minimum 20% equity and are also available for first home loan customers.
Kiwibank said it was cutting its standard one- and two-year fixed mortgage rates to 5.69% and 5.79% respectively.
Term deposit rates are being trimmed by between 10-15bps. Its new two-year rate dropped to 3.80%.
Kiwibank said there was no change to its six-month term deposit, which has a limited-time interest rate offer of 4.10%.
Meanwhile, Westpac lowered its six-month fixed mortgage rate by 20bps to 5.09% and its 18-month fixed rate by 16bps to 4.79%, effective Friday.
Sarah Hearn, Westpac NZ general manager of product, sustainability and marketing, said the bank is continually looking for ways to pass on cost reductions to home owners.
“We continue to have the lowest or joint-lowest 3-to-5 year advertised special rates of the five biggest banks.
“We know many households are still dealing with high living costs, but we expect these pressures to ease as more customers continue to roll on to lower rates over the rest of this year.”
The Reserve Bank makes its next OCR decision on August 20.
Market expectations are for a 25bps cut from 3.25% to 3%.
Since August last year, the OCR has fallen 225bps.
The Kiwibank economics team said this week the OCR will need to go to 2.5%, eventually.
Yesterday, the Bank of New Zealand announced it was cutting most of its home lending rates.
Its one-year and 18-month fixed home loan rates were cut by 10bps to 4.79%, while its two-year fixed rate decreased 6bps to 4.89%.
BNZ chopped 20bps off its six-month fixed lending rate, taking it to 5.09%.
Its three-year fixed home loan rate moved from 5.09% to 4.99%.
On Monday, the country’s largest bank, ANZ, cut its six-month special to 5.14% and its two-year rate to 4.89%.
