ASB has announced cuts to its fixed-term mortgage rates, with some rates falling by up to 16 basis points, ahead of the Reserve Bank’s official cash rate (OCR) decision.
Economists are confident the OCR will be cut this afternoon, but by exactly how much remains unknown. The Reserve Bank was set to reveal the new rate at 2pm.
The bank’s six-month fixed home lending term rate has decreased from 6.85% to 6.75%, a reduction of 10 basis points. Meanwhile, for the one-year term, the rate has dropped from 6.35% to 6.19%, representing a decrease of 16 basis points.
Other longer fixed-terms have been decreased by 10 basis points across the board.
ASB has also reduced its term deposit rates by between five and 20 basis points each.
The bank’s executive manager of personal banking Adam Boyd said the move would be of “relief for many households”.
“We’re pleased to lower our mortgage rates across some popular terms in response to dips in wholesale rates, and we know mortgage rates trending downwards in recent months will be a relief for many households,” he said in a media release.
“We’re optimistic this relief will be extended to more Kiwi with the OCR decision this afternoon.”
All rate decreases are effective immediately for new and current ASB customers.
