ASB has cut rates for two fixed mortgage terms.
Their eighteen month fixed rate has been reduced by -5 bps to 4.70% and their two year fixed rate has also been reduced by -5 bps to 4.74%.
These are the changes for their ‘specials’ – similar reductions have been made for their equivalent standard rates.
The changes make them the leading market rates, except for the offers from HSBC.
These changes also come just after Westpac raised its floating rate by +9 bps to 5.84%.
And on April 3, Kiwibank raised its one year ‘special’ by +10 bps to 4.69%.
This ASB move may well signal a change of direction for home loan rate movements.
(There was a brief reduction by BNZ in their one year rate from 4.49% to 4.39% on February 3 but it rose back on February 10. ANZ cut its one year ‘special’ on February 11 to 4.39% and that moved back to 4.49% in mid-March.)
The lowest rate in the market for 18 months continues to be HSBC’s 3.99% rate.
The lowest rate in the market for 2 years continues to be the 4.39% offer by HSBC.
Wholesale rates have stopped rising, especially for terms less than five years.
ASB last changed fixed rates on January 25, 2017 when they increased their 18 month ‘special’ by +10 bps to 4.75%.
A snapshot from the key retail banks is:
|below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB Bank has a ten year fixed rate of 5.99%.