Kiwibank is cutting its one-year special to 4.99 percent. Photo: RNZ / Marika Khabazi
Another bank has dropped one of its home loan rates below 5 percent.
On Monday, ANZ cut a number of its fixed home loan rates, taking its special one-year and 18-month rates to 4.99 percent.
Kiwibank said on Tuesday it was also cutting its one-year special to 4.99 percent.
Previously, 4.99 percent for two years had been the best advertised rate in the market.
Corelogic chief property economist Kelvin Davidson said choosing a rate was a "delicate decision" for borrowers.
"Do you float a bit longer and try to get that fixed rate at the absolute bottom or do you recognise that rates are fairly close to bottom and take the certainty now. There's a balance there."
He said some people would probably hedge their bets. "We certainly saw that in the February lending data, there was a bit of hedging bets going on, a sense that some people were taking some of those sub-5 percent two-year rates as well as some floating."
He said the situation where borrowers could see value in having "a bob each way" was likely to remain for some time.
"Tariff-related uncertainty might see interest rates sneak a bit lower yet. There's a balance between trying to get the absolute bottom of the market and recognising certainty has value, too. Tricky decisions might persist a while yet."
Kiwibank is also cutting its six-month fixed rate to 5.49 percent.
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