ASB has cut its fixed home loan rates by up to 20 basis points, bringing its one-year term to 5.79%.
All retail banks moved to cut rates last week, following the Reserve Bank’s decision to lower the official cash rate (OCR) by 50 basis points.
Other banks, including ANZ and Westpac, have also dropped their fixed-rate offerings.
ASB announced its new changes today, with reductions across all fixed-term periods from six months to three years, following its earlier cuts to its floating rates last week.
The six-month, one-year, 18-month and two-year terms were the largest drops of 20 basis points each, while the three-year rate decreased by 10 basis points.
ASB’s one-year rate now matched the lowest in the market at 5.79%, down from 5.99%, according to the bank.
All new rates were effective immediately for both new and existing customers. ASB’s servicing test rate for home loans was also dropping to 7.60% effective from today.
Term deposit rates also down
The bank has also reduced some term deposit rates by between 10 and 20 basis points as part of the changes announced today.
Last week, ASB dropped floating interest rates across personal, business and rural lending by 0.50% following the Reserve Bank’s OCR call last week.
Homeowners can expect further lowering of mortgage rates after the Reserve Bank today cut the official cash rate by 50 basis points. (Source: 1News)
Executive general manager of business banking Rebecca James said at the time there were also changes to rates for savers.
“We’re aware that an OCR drop will impact our customers who rely on interest from savings accounts. We encourage them to call us so we can support them with options to get the best out of their money.”
