You are not permitted to download, save or email this image. Visit image gallery to purchase the image.
The offer, which is effective from Monday, will be available for a limited time and requires a minimum 20% equity.
"Implications from the 'no rate change' decision were that wholesale rates increased. It's likely we'll be the outlier reducing our one-year home-loan rate but that is a position we're comfortable to hold," Chris Greig, Kiwibank general manager for borrowing and savings, said today.
"We're keen to see a continuation in the momentum we've had in growth over the past year as more New Zealanders choose to bring their banking to Kiwibank."
Kiwibank is also currently offering $3000 cash back for those that have at least $250,000 in new lending and make the switch to Kiwibank.
New Zealand's big four banks - ANZ, ASB, BNZ, and Westpac - all have a special one-year rate of 3.55%.
On Wednesday, the Reserve Bank left its official cash rate (OCR) unchanged at 1%.
But ASB chief economist Nick Tuffley, who described the move as a surprise, said he expected the OCR to fall to 0.5%.
"The most likely timing is the February and May MPS (monetary policy statement) releases."
Kiwibank also lifted its one-year term-deposit rate from 2.70% to 2.75%.