ASB has cut a number of its fixed home loan rates.
It said it was the fifth fixed mortgage rate drop this year.
The six-month rate drops by 10 basis points to 5.79 percent, and the four and five-year rates by 20 and 10 basis points, respectively, to 5.59 percent and 5.69 percent.
ASB executive general manger personal banking Adam Boyd said a growing number of customers were splitting their mortgages across different terms.
The drops take effect immediately.
Earlier, Squirrel chief executive David Cunningham said borrowers were frequently choosing a one- and two-year split or a two- and three-year.
“The 4.99 percent [two-year] rate has been an absolute game-changer,” he said.
“Everyone has gone from short terms to the traditional two-year which New Zealanders have loved for decades.
“We’re seeing almost no money going floating and a very low level into six-month fixes because those rates are materially higher.”
