ASB, one of New Zealand's largest lenders, on Thursday joined two other major banks in lowering their home loan rates.
BNZ and Kiwibank had pulled down their home loan rates earlier this week, and ASB had only made cuts to six-month, one-year and four-year terms last week.
Next week, the Reserve Bank is expected to hold its official cash rate at 5.5 percent - which would mark nearly a year of steady monetary policy.
Nonetheless, ASB's latest rate cuts would take effect from Thursday, the bank said in a statement.
"Effective immediately the three-year term will drop 26 basis points from 6.65 percent to 6.39 percent, with the four-year rate falling 10 points from 6.49 percent to 6.39 percent.
"This is the eighth time we've dropped mortgage rates this year. We intend to do as much as we can to take the pressure off our existing homeowners and prospective home buyers despite the official cash rate remaining flat at 5.50 percent.
"The slight decrease in wholesale rates, which is the rate at which the bank is borrowing money, means we can adjust our rates to benefit our customers looking to borrow," ASB personal banking executive general manager Adam Boyd said.
