TSB announced this week that it was offering the long-term rates.
It is believed to be the longest fixed rate ever offered in New Zealand.
To qualify for the 5.89% rate, buyers must have a 20% deposit.
TSB chief executive Kevin Murphy said the bank was responding to a gap in the market.
"To know what your interest rate will be and you can budget on that for a longer period - for people who need to manage their incomes closely, I think this will be very attractive.”
The rate will be able to be transferred if the property is sold to buy another.
BNZ offers a seven-year fixed rate but it is much higher, at 6.89%.
Broker David Windler said the TSB move was a welcome one and would give investors certainty. “It gives them a point of difference, investors will like it.”
He expected more fixed rate cuts over the next few days.
