ANZ and the National Bank lowered their mortgage interest rates on Wednesday.
Both banks have dropped their variable interest rates by 0.7%, with the ANZ standard variable rate and the National Bank's floating rate dropping from 8.2% to 7.5%.
It is the latest in a series of interest cuts by the major trading banks, which has seen Kiwibank drop its variable home loan rate to 6.99% - the lowest variable loan rate since May 2004.
ANZ' chief economist Cameron Bagrie says the cuts have come about in expectation of another big cut in the Official Cash Rate by the Reserve Bank at the end of January. The rate is currently 5%.