This makes its new rate 20 basis points lower than the closest bank which is TSB.
HSBC has an even lower rate of 6.74%, but to be eligible customers need to have minimum combined home loans of $500,000.
Kiwibank chief executive Sam Knowles says the rate cut is to give some certainty to customers who are concerned about interest rate volatility.
"This is another option for home loan customers looking to lock in very competitive rates and to spread their lending risk.
"Just last week we introduced a 12-month cap option on our floating rate and we are now giving some longer term security for customers."
The cap option allows customers on a floating rate to ensure the rate does not increase above 6.50% for 12 months and costs $250. Kiwibank's present floating rate is 5.90%.
