The changes come after Reserve Bank governor Alan Bollard left the official cash rate at its historical low of 2.50%.
In his announcement Bollard said the rate is likely to remain low for some time.
Kiwibank chief executive Paul Brock said the changes reflect an expectation that rates will stay low for the time being.
"We think that the right thing to do in this market is pass on the benefit of lower rates for all customers whenever we can," Brock said.
Kiwibank says that its capped variable rate limit remains at 6.50% for one year and its 30 month ‘off card' special of 5.99% remains for a few days.
Meanwhile Westpac has taken 10 points off its one year rate. Its new rate of 5.85% makes it the most competitive, in this term, amongst the big banks.
While the rate is well below its floating rate of 6.24%, Westpac has chosen to be competitive in this area with its Choices Everyday revolving home loan which is priced at 5.60%.
| | Old rates | Change | New Rates | | ----------- | ------------- | ---------- | ------------- | | 6 month | 5.75 | -0.10 | 5.65 | | 1 year | 5.80 | -0.15 | 5.65 | | 2 years | 6.30 | -0.41 | 5.89 | | 3 years | 6.70 | -0.31 | 6.39 | | 4 years | 7.30 | -0.51 | 6.79 | | 5 years | 7.60 | -0.41 | 7.19 |
