(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% |
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