ASB has once again reduced some of its mortgage rates, following the banking sector’s recent trend – but it’s also announced two new rates that buck the pattern.
The announcement follows yesterday’s news that inflation has fallen to 2.2%.
This morning, ASB announced new fixed home lending rates of:
- 6.39% for a six-month term (down from 6.75%)
- 5.99% for a one-year term (down from 6.19%)
- 5.79% for an 18-month term (down from 5.89%).
The bank also adjusted its four-year and five-year fixed home lending term rates – in the opposite direction. The new rates for both of those mortgages are 5.79%, up from 5.69%.
“We know there’s strong appetite for shorter-term mortgages at the moment,” said the bank’s executive general manager of personal banking Adam Boyd
“Our drops to six-month, one-year and 18-month terms in response to movement in wholesale rates should appeal to our customers refixing, as well as those looking to buy a property.
“All rate adjustments are effective immediately for new and current customers.”
It’s just the latest adjustment after the Official Cash Rate was cut by 0.5% to 4.75% last week.
It has also reduced some of its shorter-term term deposit rates by between 10 and 35 basis points, and increased its four and five term deposits by 10 basis points each.
Kiwibank changes from today
Also today, Kiwibank’s new rates come into effect. They are:
- For six months fixed, 6.65% special rate or 7.55% standard rate
- For one year fixed, 5.99% special rate or 6.89% standard rate.
A special rate requires a minimum of 20% equity.
Westpac changes from today
Westpac has also announced cuts to some of its “popular” fixed home loan rates.
The bank’s new special rates, available to those with minimum 20% equity, are:
- 6.45% for a six-month term, down 0.30%
- 5.99% for a one-year term, down 0.20%
- 5.65% for two- and three-year terms, both down 0.04%.
The bank’s new standard rates are:
- 7.05% for six months, down 0.30%
- 6.59% for one year, down 0.20%
- 6.25% for two- and three-year terms, both down 0.04%.
Westpac also lowered a number of term deposit rates.
“This is the eighth time we’ve announced cuts to fixed home loan rates since the start of July,” general manager of product, sustainability and marketing Sarah Hearn said.
“Competition for home loans continues to be fierce, and we’re working work hard to offer good value and great service to customers.”
Westpac this morning said that the changes were effective from today.
