The ASB bank has cut its one- and two-year fixed home loan rates, though special conditions apply.
The trimming rates is despite the Reserve Bank twice lifting wholesale interest rates this year and indications further rises are likely.
The bank is offering a one-year fixed home loan rate of 5.85 percent and a new two-year fixed rate special of 5.89 percent.
The two-year rate applies to people who have at least 20 percent equity in their new home. These customers must also have an ASB credit card and have salary or wages credited to their main transaction account with ASB.
The bank's general manager of product and strategy, Shaun Drylie, said the new rates provided new options and greater certainty over the medium term ahead of the Reserve Bank's next review of the Official Cash Rate on 12 June.