ANZ has dropped its one-year fixed home loan rate to 2.79 per cent, which it says is "well beyond historic lows".

It follows other major banks dropping below 3 per cent for the first time as the mortgage competition continues to bring in new customers amid the Covid-19 pandemic.

ANZ also dropped other fixed rates: 18-months (3.05 per cent), 2-year (2.95 per cent) and 3-year (3.35 per cent).

The new rates, available from tomorrow, will take fixed home loan rates "well beyond historic lows" said Ben Kelleher, ANZ managing director retail and business banking.

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"These new rates reflect a new reality where many home loan customers are facing uncertain times and our commitment to keeping rates as low as possible to help ease the pressure.

"Putting more money back in the pockets of customers will enable them to repay debt, or support the wider New Zealand economy as the country recovers from restrictions brought on by Covid-19."

No decision had been made on how long the rate would be available, but it would largely depend on market conditions.

"As always, we will be working hard to balance the needs to borrowers and savers in setting new deposit rates, although this is challenging in the current low-interest-rate environment," Kelleher said.

On May 11, ANZ slashed its one-year fixed rate to 2.99 per cent, following Kiwibank and ASB dropping below 3 per cent.

HSBC, TSB and Westpac have also dropped rates.