Kiwibank, ASB and Westpac have announced reductions to their variable home loan rates in response to a drop in the official cash rate.
As widely expected and signalled, the rate was cut by 25 basis points, to 3.5%.
Commentators have suggested that the widespread economic turmoil sparked by US President Donald Trump's tariffs could lead to lower interest rates than might otherwise be the case.
Kiwibank said its variable term loan had dropped to 6.5%. ASB's was 6.64% and Westpac's choices floating was dropping to 6.74%.
Westpac general manager of product Sarah Heran said the bank had cut some variable rates by 2.1% over the current easing cycle.
"Lower interest rates should give consumers and businesses a confidence boost after several years of higher costs and interest rates," she said.
Westpac was also lowering the test rate it uses to assess whether borrowers can afford loans to 7% from 7.25%.
The Reserve Bank noted the tariffs in its update and said they would have a "significant negative impact" on global growth.
Kiwibank chief economist Jarrod Kerr said the OCR was likely to need to go lower than previously forecast, and that would mean lower retail rates for home loan borrowers, too.
"There's been a 4.99% out there that's got a lot of air time... rates are just going to be lower than where they are today. They've cut 25 today we think there's at least another 50 coming with the threat of another 100 coming and that's been priced into wholesale markets.
"I think we will see lower mortgage rates as these cash rates are pegged lower."
Banks acknowledged that falling rates were not positive for savers.
"We've supported them by holding back some of the previous OCR reductions on key savings products in the current cycle, and we encourage savers to talk to us if they're unsure what falling rates might mean for them," Hearn said.
