Kiwi banks have dropped mortgage rates in the wake of the official cash rate cut but many still remain above the rates being offered in Australia despite the cash rate now being on par in both countries.

On Wednesday the Reserve Bank of New Zealand cut the official cash rate from 1.75 per cent to 1.5 per cent - the same as Australia's cash rate.

Major banks have trimmed their floating rates by 10 or 15 basis points and some fixed rates but haven't passed the full rate cut on to customers and the gap between the floating rates of