KiwiBank is the second bank to cut fixed mortgage rates this week.
The state-owned bank has cut its one-year fixed rate to 5.65%. The rate is equal to its current floating rate and will stay in place till the end of August.
The bank says it is taking advantage of a drop in its borrowing costs.
The move follows across-the-board cuts to fixed rates by ASB earlier in the week. But the cuts follow recent rate increases.
Radio New Zealand's economics correspondent says markets now see little chance of an increase in the Official Cash Rate by the Reserve Bank in September from the current record low of 2.5%.
