Three of the nation's major banks have been able to follow Kiwibank's lead in plummeting two-year home loan rates.

Kiwibank's lead in slashing two-year fixed home loan rate has been coordinated by three of the chief banks.

Westpac, National and ANZ have all lessened their two-year rates, by no less than 20 basis points to 7% or just lower than that.

ANZ and National have as well lessened their three, four and five-year rates. ANZ's five-year rate is now the lowest in the market at 7.75%

Kiwibank weaken its opponents yesterday in lowering its two-year fixed home loan rate from 7.30% p. a. to 6.99%.

Outgoing Chief Executive at the state-owned bank, Sam Knowles said the rate slash was to offer longer-term confidence to customers who were worried concerning interest rate instability.

HSBC has brought adjustments in its rates in the contradictory direction, by lifting its standard two-year rate from 6.49% to 6.74% which is still the lowest in the market.

The market range for two-year rates now vary between 6.74% to 7.4%

Most of the main banks have attuned interest rates ever since the Reserve Bank swelled the certified cash rate by 25 basis points to 2.75% fifteen days ago which was the first rise in the OCR since July 2007.