ASB is the latest major bank to announce cuts to its mortgage rates.
All of the bank’s fixed home lending rates were lowered effective immediately, and term deposit rates were also cut.
All its fixed mortgage rates are now under 7%.
The move comes after the Reserve Bank of New Zealand this month announced the official cash rate will remain at 5.5% – banks are now predicting a cut in the OCR later this year following last week’s drop in inflation.
BNZ, Kiwibank, Bank of China, Heartland Bank, Westpac, ANZ and the Co-operative Bank have all made changes to rates recently.
The new rates
“Effective immediately the 6-month mortgage rate drops 25 basis points from 7.24% to 6.99%, while the 1-year fixed rate drops 29 basis points from 7.14% to 6.85%,” a spokesperson said.
“ASB’s 18-month rate drops 20 basis points to 6.69%, while its 2-year rate drops 26 basis points to 6.49%.
“ASB has also made slight reductions to its 3 and 4-year terms, while its 5-year rate drops 40 basis points to 5.99% making it the first bank to offer a 5-year rate at below 6% since August 2023.”
ASB’s term deposit rates – ranging from its six-month and five-year terms have been cut by between 10 and 30 basis points.
