(Updated with ANZ rate move.)
ASB has cut its 'special' one year mortgage rate again, reducing it to 4.95% late today.
The previous rate was 5.15% so this is another 20 bps cut, matching main rivals BNZ and Westpac for the one year rate.
ASB last cut this rate on October 4, 2013.
Also today, they cut their three year fixed rate to 5.99% also matching BNZ, Westpac and also SBS.
This caps a month where ASB also cut its 2 year rate to 5.59% on November 8, 2013.
Despite general expert commentary that rates are due to head up next year, we are seeing the <80% LVR get very competitive and rates are falling in this segment.
The depth of the competition is emphasised by the shift by the big operators into the 'low rate' positions.
We are seeing few moves in the first home buyer segment of >80% LVRs.
BankDirect has made the same moves. Sovereign haven't yet announced their changes but it is expected they will follow quickly.
Both ASB and BankDirect specials are available for all existing home lending (irrespective of LVR) and new home lending which has a minimum of 20% equity in the security property i.e. an LVR of 80% or less. These special rates are subject to customers having (or obtaining):
- an ASB/Bank Direct Credit Card and
- their main transactions account with ASB/ Bank Direct i.e. their salary, wages, business or rental income credited to this account.
Update: ANZ has also introduced a 'special one year rate of 4.95% for borrowers with a minimum of 20% equity.
To qualify for this new ANZ rate - like most others - you need to have your salary credited to an ANZ account, plus you will need to have either an ANZ credit card or an ANZ insurance policy. If you have an existing ANZ package discount, that won't apply to this 'special' rate. Can't meet these requirements? then the 5.19% rate will apply even if you have 20% equity.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 (updated) |
4.95% | 5.59% | 5.95% | 6.50% | 7.10% |
 |
4.95% | 5.65% | 5.59% | 5.99% | 6.99% |
| BNZ | 4.95% | 5.80% | 5.95% | 5.99% | 6.99% |
| Kiwibank | 5.25% | 5.65% | 6.40% | 6.90% | |
 |
4.95% | 5.75% | 5.59% | 5.99% | 7.10% |
| Co-op Bank | 4.99% | 5.59% | 6.20% | ||
 |
5.10% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 5.20% | 5.45% | 5.45% | 5.99% | 6.55% |
| TSB | 5.40% | 5.40% | 5.85% | 6.45% | 7.00% |
--------------------------------------------------------------
Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
--------------------------------------------------------------
Fixed mortgage rates
Select chart tabs
25 Comments
I don't really care what their wholesale cost is - I am advocating for the MortgageBelt of NZ.
And I am getting a little tired of constant opposition from a certain Grant A, advocating for the Banking Industry.
However, I have deduced: Grant A may, in fact, be Tony Alexander. The A = Alexander, The 'ant' in Grant = 'Anthony' aka Tony. Only puzzling thing is Tony has a good sense of humour ,,,
KH - if you'd actually look at the stupid comments, mainly from one individual that I respond to, and yes almost solely interest rates & banks, as an ex-banker its hard not to respond to him in an increasing frustrated non-humerous way as no one else seems to which arguably legitimises his coments. Won't happen again as I've have decided to withdraw from posting as I agree its contributes nothing.
Having just spent the last six months overseas I can honestly say the people of NZ are mental! I used to think BH was joking when he used to rave about how property was half our economy, but now I realise he was serious and RIGHT!
Nowhere else in any of the countries I visited were the people so completely fixated on residential property as Kiwis are. Here's something that will make you laugh - Since I've been back all anyone has asked me about is what are the property investment opportunities like overseas!!!
No Kiwi has ever asked me about anything else! Always it's about house prices and can they invest overseas etc etc etc! I always reckoned it was bad enough when all anyone wanted to discuss was boring rugby shite but now that would almost be a breath of fresh air!!! LOL!!!
I was back last month and visited an ANZ branch to sort out some account business. The counter clerk said that Barfoot & Thomson (or one of the generic estate agents) was holding a seminar IN THEIR BRANCH in 10 minutes on investing in property and that I should attend.
A B&T drone tried to grab me as I walked out - best way to invest wugggawuggawugga. Told him no thanks, that I was quite happy with my cash reserves and 3 properties - 1 residential, 1 rental in Europe and 1 holiday home in NZ, not interested.
The guy wouldn't let go - gave me the spiel about how I can get guaranteed 20% ROI per annum wuggawuggawugga
Confirms to me that NZ's banks are no better than the drug dealers hanging out on Baltimore street corners, touting
- Green, red, blue, and black tops
- Tech 9
- In the Hole
- Q tip
- Payback
- Killer Bee
- Red Dilly
- Gold stars
- Family Affair
- Death Row
- WMD
- Bin Laden
- Rockefeller
- Double Cheese
- Spider bags
- Bottle Rockets
- Reddies
- Rasheed
- Benno
- Body Bags
- Pandemic
- Black horse
- Big Yellow Bird
- Brokeback
- Icicle
- Mistletoe
- Greenhouse gas
Or whatever they're calling the drug of choice that day
Machiavelli With respect John B and Magnum PI, why on earth are you here talking about property then?
I think it's highly relevant that a bank tries to push someone who has indicated zero interest in investing in property towards a seminar that will ultimately (hopes the bank) result in their borrowing money from said bank.
In other trades, that comes under "soliciting". Or "pimping". Or "slinging"
Passport' (Uruwhenua) is issued in Wellington, btw.
Interestingly, ANZ's home page features home loans and credit cards. Nothing else.
The bank I use in Germany features investment planning for retirement and tips on how to reduce bank charges. And an art exhibition they're sponsoring.
Deutsche Bank website's similar. Without the art exhibition....
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.