ASB Trims Home Loan Interest Rates for Third Time in Three Weeks

Date Published: 11 March 2024

Key Facts

• ASB has announced a third round of reductions to some of its fixed home loan interest rates.
• No new market-leading levels were established with these cuts, aimed mainly at staying competitive with short-term rates.
• The reductions include: a ten basis point drop for the six month fixed rate, a five basis point drop for the one year rate and a six basis point drop for the two year rate.
• ASB is now in line with BNZ for the lowest six month rate among the main banks, while still ten basis points higher than market leaders China Construction Bank and ICBC.
• For the one year and two year rates, ASB matches ANZ and BNZ.
• ASB also lowered their 12-month term deposit rate to 6.00% (from 6.10%) and four term deposit rates at longer terms by between 5 and 20 basis points.
• Kiwibank has also cut their rates, matching the newly reduced levels set by ASB.

Article Summary

ASB Bank has kicked off the week by announcing a third series of small cuts to its fixed home loan interest rates. This move is essentially an effort to remain competitive in the short-term, and didn’t establish any new leading levels in the market.

The reductions included ten basis points off their six month fixed rate, five off their one year rate, and six off their two year rate. This realigns ASB with the BNZ as having the lowest six month rate among the main banks, though still ten basis points higher than the current market leaders, the China Construction Bank and ICBC. When it comes to one year and two year rates, ASB now matches ANZ and BNZ after the cut.

In addition to these reductions, ASB has also adjusted its term deposit rates. The 12-month term deposit rate has moved from 6.10% to 6.00% and longer term deposit rates were reduced by between 5 and 20 basis points. Parallel to ASB, Kiwibank has also made reductions to its rates, matching the newly lowered levels and establishing a similar competitive position.

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