The new rate comes after weeks of price cuts from the nation's biggest banks, and marks the first time home loan rates have dropped below the 2.8% mark.
The home loan rate comes into effect on May 21 and edges out China Construction Bank's 2.80% one year loan as the cheapest in the market.
The nation's biggest bank has laid down a challenge to its competitors, a move likely to push them to follow suit.
ANZ's one year loan is 26 basis points sharper than its big four rivals. ASB, BNZ and Westpac offer a 3.05% one year rate.
ANZ announced it will also cut its 18 month rate to 3.05%, two year rate to 2.95%, and three year rate to 3.35%.
Ben Kelleher, ANZ's managing director for retail and business banking, said the new rates were "well beyond historic lows".
"These new rates reflect a new reality where many home loan customers are facing uncertain times, and our commitment to keeping rates as low as possible to help ease the pressure," Kelleher said.
"Putting more money back in the pockets of customers will enable them to repay debt, or support the wider New Zealand economy as the country recovers from restrictions brought on by Covid-19," Kelleher added.
ANZ said it had not made a decision on how long the new home loan rate would be available, and prices would "largely depend on market conditions".
Meanwhile, SBS has also cut mortgage rates, becoming the latest to drop below the 3% mark.
SBS's one year rate falls to 2.99%, its 18 month rate drops to 3.05%, as does its two year rate. The rates also come into effect on May 21.
Keep up to date with the latest market rate on our mortgage rates table.