ASB is the latest major bank to drop some of its fixed mortgage rates following last week’s OCR cut.
Effective immediately, the bank announced it would cut its 6-month term by 20 basis points to 5.59%, one-year rate by 26 basis points to 4.99%, and 18-month rate by 20 basis points to 4.99%.
The move follows similar cuts by BNZ, Westpac, Kiwibank and ANZ earlier this week.
“Today’s rate changes reflect our ongoing commitment to supporting customers in achieving their homeownership goals. We’ve seen growing interest in the 24-month term 4.99% rate, showing customers are beginning to favour longer-term certainty,” ASB executive general manager Adam Boyd said.
“With three of our terms now offering rates under 5.00%, we are pleased to be able to offer a range of lending options to suit homeowners’ and home buyers’ diverse needs.”
The bank also dropped some of its term deposit rates by between 10 and 35 basis points.
“We are mindful that lower rates affect homeowners and savers differently. We encourage anyone looking for guidance and advice to get in touch with us.”
The mortgage rate cuts came after the Reserve Bank reduced the official cash rate by 25 basis points last week to 3.5%.