The lender has relaunched its digital home loan, offering 1.99% for one year fixed home loans, 2.35% for two year loans, and three years at 2.45%. Heartland will also offer a floating rate of 2.95%.
Heartland's new product is only available direct to consumer, through a "self-serve" online application.
The rates are significantly cheaper than those offered by Heartland's rivals.
The cheapest one year bank rate on the market is HSBC Premier's 2.45%, while KiwiSaver provider Simplicity offers a 2.25% mortgage to its customers.
Heartland has eyed a relaunch of its digital home loan for several months, after the successful trial of a 2.89% digital mortgage in March. The last iteration of the digital loan had a $50 million cap.
Heartland Group chief executive Jeff Greenslade said digital loans were more cost effective to provide, allowing the lender to provide cheaper rates.
"Digitalisation means a low cost of onboarding, which can be passed on to borrowers. It also means speed – an answer can be given in minutes, so customers don’t have to endure the lengthy processes of mainstream banks. Moreover, Heartland’s group structure provides it with broad funding flexibility."
To be eligible for the loans, Heartland customers must be refinancing or purchasing a standalone section in a "major New Zealand centre", the bank said, and have a 20% deposit.
The home loans are only available to owner-occupiers, for a "limited time", the bank said.