Kiwibank has today cut its four-year home loan rate from 6.79% p.a. to 5.99% p.a. The new rate significantly undercuts competing bank rates.

Kiwibank Communications Manager Bruce Thompson said the bank traditionally likes to kick-start the year with a market-leading rate.

"Over the past couple of years, the competition has been for shorter term lending, but Kiwibank is now offering home owners the opportunity to lock-in a very low rate for a longer period.

"There is considerable uncertainty about interest rates and about the world economies, so this four-year offer gives customers certainty," Mr Thompson said.

The four-year special requires a minimum 30% deposit (equity) and is available for a limited time.