ANZ and the National Bank have cut their one-year fixed mortgage interest rate to the lowest point in at least 17 years.
The sister banks' fixed home loan will drop 40 points to 5.25% from Thursday.
ANZ's retail managing director Kerri Thompson says wholesale interest rate markets have been volatile, but there is currently a window for cheaper longer term rates.
The bank is also reducing its six-month term deposit rate by 30 points to 4% per annum.
