TSB Bank has followed the lead of some of its rivals and cut its fixed mortgages rates for terms of one year to three years.
TSB says the cuts, affective today, drop its 12 month rate by 40 basis points to 5.95%, that matches cuts one-year rate cuts by ANZ, the National Bank, ASB and Westpac yesterday.
TSB is also dropping its 18 month rate by 30 basis points to 6.15%, two-year by 30 basis points to 6.28% and three-year by 11 basis points to 6.99%.
The moves follow sharp drops in wholesale 'swap' interest rates in the last week after the earthquake changed many views on where interest rates are headed.
See the interactive chart below on wholesale rates.
But the banks have held off cutting their floating mortgage rates, which most new borrowers have been choosing this year and which almost half of all mortgages are on.
The Reserve Bank of New Zealand is due to release its March quarter monetary policy statement next Thursday and is widely expected to cut the Official Cash Rate by at least 25 basis points.
That may trigger cuts in floating mortgage rates.