Heartland Bank has brought in home loans of less than two per cent per annum, the cheapest offering in the country.
The 1.99 per cent rate is available for a one-year fixed loan, according to the bank.
It also offers 2.35 per cent for two-year fixed, 2.45 per cent for three-year and 2.95 per cent for a floating loan.
It's the first time a mortgage rate has dropped below two per cent in New Zealand, according to Interest.
The previous lowest rate available was for SBS Bank, offering a 2.49 per cent rate for an 18-month, two-year and three-year fixed rate.
Comparatively, the main banks of ANZ, ASB, BNZ, Kiwibank and Westpac all offer rates of 2.55 per cent at a one-year fixed term as their cheapest rates.
Interest rates have plummeted in New Zealand as the Covid-19 pandemic takes its toll on the world's markets.
According to Interest, one-year home loan rates have plummeted since March this year.
Heartland Bank has been contacted for comment.