The latest round of mortgage rate wars has intensified with some rates dropping to historic lows

ASB Bank has become the latest bank to join the party - dropping its one year fixed rate to match the record low 3.95 per cent offered by ANZ.

JMI Wealth director Andrew Kelleher says it's almost too good to be true.

He says this shows us there's a real battle for market share - with banks competing for a smaller pie with less lending going on.

But he's unsure how sustainable it is.