ASB pushes mortgage rates up again for short terms. This change takes its floating rate much higher than its rivals

ASB has also raised home loan rates today, including its floating rate.

At the same time, ASB has changed some term deposit rates, lowering its nine month rate, but raising both its three month and eighteen month rates.

The last time ASB changed home loan rates was on January 6, 2017.

The hike of the floating rate puts ASB at a pricing point significantly higher than any of its rivals. But it will be hoping they follow, as they all did after their January 6 changes.

ASB now also has the highest one year carded rate offer in the market.

Here is a way to see both changes from ASB:

  as at
Dec 31, 2016
January 6
change
January 23
change
New rate
Jan 23, 2017
  % % % %
Floating rate 5.65 +0.15 5.80
6 mth fixed 4.75 +0.10 +0.10 4.95
1 year fixed 4.29 +0.20 +0.10 4.59
18 months fixed 4.45 +0.20 +0.10 4.75
2 years fixed 4.59 +0.20 4.79
3 years fixed 4.79 +0.30 5.09
4 years fixed 5.19 +0.30 5.49
5 years fixed 5.39 +0.30 5.69

ASB last changed their floating rate on November 25, 2016, raising it at that time by +10 bps.

Kiwibank also raised home loan rates today, as did the SBS Bank although also cut its one year rate to a market leading level.

Today’s changes don’t alter who has the leading carded rates for mortgage borrowers. SBS Bank has joined HSBC Premier to lead for a one year term, TSB Bank has the market-leading offers for 3 and 5 year terms with HSBC.

See all banks’ carded, or advertised, home loan rates here.

A snapshot from the key retail banks is:

below 80% LVR Floating 6 mths  1 yr  18 mth  2 yrs   3 yrs 
  % % % % % %
5.69 4.99 4.45 5.05 4.75 5.49
ASB 5.80 4.95 4.59 4.75 4.79 5.09
5.79 5.25 4.49 5.05 4.79 5.09
Kiwibank 5.40 4.85 4.35   4.65 5.05
Westpac 5.65 5.25 4.49 5.05 4.79 5.09
             
5.55 4.80 4.45 4.60 4.75 5.05
HSBC 5.59 4.85 4.19 4.29 4.39 4.69
HSBC 5.54 4.50 4.19 4.45 4.54 4.95
5.54 4.75 4.25 4.45 4.49 4.69

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.