Kiwibank dramatically dropped its one-year rate to match its floating rate at 6.15% this week after a quiet few months without much movement by the major banks.
This step out of line is only till the end of the month, but nicely shakes up the mortgage rate scene.
As this graph shows, Kiwibank has made its one-year rate lower than the major banks quite frequently, stirring competition.
The only other lender to make changes this year is HSBC which increased its six-month and one-year fixed rates by 25 basis points for its Premier product.
The new rates are still well below the median rates for a bank however they are subject to a home loan of $500,000 or more.