PHOTO:TOM PULLAR-STRECKER/STUFF Kiwibank has dropped the rate on its floating home loans.

Kiwibank is cutting its floating rates for business and home loans by 100 basis points.

That takes its variable home loan rate to 3.45 per cent, its business variable loan to 5.5 per cent and its business overdraft to 7.5 per cent.

It brings the floating home loan rate closer to fixed options – Kiwibank currently offers a special one-year rate of 2.65 per cent.

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At other banks, the difference is much bigger – ANZ has a one-year rate of 2.65 per cent and a floating rate of 4.44 per cent.

Kiwibank Chief Executive Steve Jurkovich said the cut would give Kiwibank customers greater flexibility, choice and savings – providing an opportunity to pay back their loans faster, save, or buy local and support New Zealand’s economy.