Banks announce cuts to their two year mortgage rate.

ANZ created waves on Tuesday when they announced their two year fixed home loan special rate would drop from 5.8% to 5.45%.

Following in the footsteps of ANZ, both Westpac and BNZ banks announced on Wednesday they would too be making cuts to their two year mortgage rates.

BNZ will be reducing their classic two-year mortgage rate from 5.69% to 5.39%. Plus a drop to their standard rate from 6.29% to 5.99%.

Westpac have matched ANZ, dropping their two year fixed rate to 5.45%.