Its two-year fixed mortgage rate moves down from 4.95% to 4.89%.
The rates are available to new and existing customers, BNZ said.
James Leydon, BNZ general manager home lending, said the bank is delivering rate relief to customers now in anticipation of an OCR cut.
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“These rate reductions across key fixed terms mean customers can access more competitive borrowing costs immediately.
“We know household budgets remain tight for many New Zealanders, and today’s changes will help reduce monthly mortgage payments for those refinancing.”
On Monday, the country’s largest bank, ANZ, trimmed some of its home loan rates.
The bank cut its six-month special to 5.14% and its two-year rate to 4.89%.
ANZ’s special one-year rate of 4.79%, which was cut by 16bps, is the lowest since June 2022.
“The cuts provide another opportunity for borrowers not already on fixed rates to take advantage of the falling interest rate environment,” said ANZ’s managing director for personal banking Grant Knuckey.
“To date, mortgaged households have felt just half of the expected final impact of the Reserve Bank’s [monetary] policy easing,” said Westpac chief economist Kelly Eckhold.
“Around 50% of all mortgages will refinance over the next six months, further lowering the average mortgage rate paid by households … this should provide a boost to household spending.”
The OCR, which sits at 3.25%, has fallen by 225bps since August last year, when it was 5.5%