The rate was previously 5.89% - BNZ also offers an 18 months fixed "GlobalPlus" rate of 6.10% - and compares with the bank's range of floating rates between 5.74% and 6.40%.
BNZ retail director Andy Symons says it's still "a great time" to be on floating rates but "observations show that some home buyers are interested in a short-term fixed loan" and the new rate is one of the lowest in the market.
Kiwibank led the current round of rate cuts, slashing its one-year rate on April 26 to just 4.99% for those with at least 30% equity compared with its standard 5.65% one-year rate.
"BNZ continues to be one of the country's most competitive home loan banks with some of the best products and rates on offer," Symons says.
He claims BNZ has "saved Kiwis more than $110 million in interest over the past five years with our award-winning Total Money product which gives customers the ability to offset their home loan against savings."
The rate cuts are against a backdrop of falls in longer-term wholesale interest rates. The one-year swap rate, from which one-year fixed mortgages are priced, has dropped from 2.84% four weeks ago to 2.51% last week and the three-year swap rate has fallen from 3.25% to 2.77% over that period.
