Kiwibank is lowering the interest rate it charges on its three-, four- and five-year home loan rate fixes.
The special rate, available to those who have more than 80 percent equity, drops to 5.35 percent for three years, from 5.58 percent.
For four years, the special drops to 5.59 percent from 5.79 percent and for five years, the special drops from 5.89 percent to 5.79 percent.
The standard rate will be 6.15 percent, 6.39 percent and 6.59 percent, respectively.
The changes are effective from Monday.
Last week, ASB senior economist Chris Tennent-Brown warned that longer-term fixes might not have much further to fall.
While the official cash rate will probably continue to drop through 2025, he said the Reserve Bank was nearing the end of the easing cycle.
Floating rates were likely to be lower in the short and long term, he said, as were six-month rates.
But one-year rates were likely to be flat or lower in the short term and flat longer-term.
Rates for two, three and five years were likely to be flat in the short term, but could be higher in the longer-term.
He said for some time people would have been better off to fix than to float while they waited for rates to drop.
