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ASB, a major New Zealand bank, has announced significant reductions to its fixed mortgage rates, impacting both new and existing customers. This follows last week’s cuts to floating mortgage rates. The changes represent a competitive move by ASB, with some rates now leading the market.
The most substantial decrease is a 20 basis point reduction on the 1-year fixed term, bringing the rate down to a highly competitive 5.79%. Other reductions include a 20 basis point drop across the 6-month, 18-month and 2-year fixed terms. The 3-year fixed term saw a 10 basis point decrease.
These adjustments are effective immediately, providing immediate benefits for borrowers. In addition to the mortgage rate changes, ASB has also lowered some of its term deposit rates by 10 to 20 basis points. This comprehensive adjustment reflects ASB’s response to the current economic climate and its commitment to offering competitive financial products.
The detailed breakdown of the changes is as follows:
* **6-month:** 6.39% to 6.19% (-0.20%)
* **1-year:** 5.99% to 5.79% (-0.20%)
* **18-month:** 5.79% to 5.59% (-0.20%)
* **2-year:** 5.69% to 5.49% (-0.20%)
* **3-year:** 5.69% to 5.59% (-0.10%)
This move by ASB is expected to have a ripple effect across the New Zealand mortgage market, potentially influencing other lenders to adjust their rates accordingly. Customers are encouraged to review their options and contact ASB or their mortgage brokers to discuss these changes and explore the best options available to them.
