ASB slashes rates across multiple fixed terms
ASB has announced reductions to several of its fixed-term mortgage rates, joining other major banks in responding to last week’s 25-basis-point official cash rate cut by the Reserve Bank.
The move reflects a broader shift in lending trends, offering home buyers more competitive options amid a changing rate environment.
Effective immediately, ASB has cut its six-month fixed mortgage rate to 5.59%, its one-year rate to 4.99%, and its 18-month rate to 4.99%, 1News reported.
ASB responds to growing demand for rate certainty
The latest “rate changes reflect our ongoing commitment to supporting customers in achieving their homeownership goals,” said Adam Boyd (pictured), ASB executive general manager. “We’ve seen growing interest in the 24-month term 4.99% rate, showing customers are beginning to favour longer-term certainty.
“With three of our terms now offering rates under 5%, we are pleased to be able to offer a range of lending options to suit homeowners’ and home buyers’ diverse needs.”
The cuts are part of a growing trend among New Zealand’s big banks to remain competitive while helping borrowers lock in more stable rates amid fluctuating market conditions.
Major banks race to cut fixed mortgage rates after OCR drop
The bank’s move follows similar rate reductions from BNZ, Westpac, Kiwibank, and ANZ earlier last week, as lenders respond quickly to monetary policy changes and shifting borrower sentiment.
BNZ has introduced a market-leading 18-month fixed rate of 4.95% p.a., along with 5.49% for a six-month term and 4.99% for one- and two-year fixed terms.
Kiwibank has also dropped its standard six-month fixed rate by 16 basis points to 6.39%, with the special rate for the same term down to 5.49%. The one-year standard rate was cut to 5.89%, and the special rate to 4.99%. Other fixed terms remained unchanged, with special rates available to borrowers with at least 20% equity.
ANZ led the reduction trend, cutting its six-month fixed rate by 40 basis points to 6.09% for standard borrowers and 5.49% for special rate customers. Its one-year and 18-month special rates also dropped to 4.99%, and the standard one-year rate was reduced to 5.59%.
Term deposit rates also adjusted downward
Alongside mortgage reductions, ASB also made changes to its deposit offerings, 1News reported.
Some term deposit rates were cut by between 10 and 35 basis points, reflecting the broader impact of the Reserve Bank’s cash rate move.
“We are mindful that lower rates affect homeowners and savers differently. We encourage anyone looking for guidance and advice to get in touch with us,” Boyd said.
Borrowers encouraged to explore options
With a growing number of competitive fixed-term rates under 5%, experts are urging homeowners and first-time buyers to consider locking in favourable rates while they last.
The drop in mortgage rates is expected to provide some relief to borrowers but may signal a tougher environment for savers, especially those reliant on fixed income returns.
