ASB adjusts its home loan rate card lower as wholesale rates ease, keeping its short fixed rates competitive, but not undercutting is main rival. ASB has trimmed TD rates too

ASB has today (Wednesday) dropped its fixed home lending rates marginally following the recent ANZ reductions.

The ASB reductions have made their six-month & four-year terms now the most competitive across the major banks, even if the advantages are actually quite small.

ASB has also dropped its 6-month and 9-month term deposit rates by 10 basis points each.

These reductions focus on the short end of the rate curve, a place that borrowers have recently joined savers in favouring.

With May the final real estate 'season' in the bank budget year where any significant market gains can be won, it is perhaps not surprising to see this competitive push at this time.

But new real estate transactions are in fact hard to find, so prospects don't look to flash on that front. But there is always the refi component of the market, and suggestions that rates might be lower in the future is helping those transactions being done at short fixed terms. Being competitive in this space is now crucial.

But the variations between banks are small, and no bank will want to lose a client with a solid financial situation. It should be a good time to negotiate. First check your online resources for below-card offers from your existing bank, and go from there. Carded rate offers are the high end of the range.

Moving to a challenger bank remains a real option to pick up even lower rates. But be careful with brokers; not all of them work with all challenger banks so they may steer you away from those options.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. Term deposit rates can be assessed using this calculator.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market. They will become important in a falling market however.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at May 8, 2024	%	%	%	%	%	%	%
ANZ	7.25	7.14	6.89	6.79	6.65	7.34	7.34
	7.24 -0.05	7.14 -0.10	6.89	6.75	6.65	6.49 -0.06	6.39
	7.29	7.24	6.89	6.79	6.65	6.55	6.55
	7.35	7.25		6.79	6.65	6.55	6.55
	7.39	7.29	6.95	6.75	6.65	6.59	6.39
Bank of China	7.09 -0.10	6.99 -0.10	6.75	6.65	6.49	6.39	6.39
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.29	7.14 -0.10	6.99	6.79	6.65	6.55	6.55
Heartland Bank		6.89	6.69	6.55	6.35
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.35	7.24	6.99	6.69	5.99	6.19	6.19
	7.39	6.99	7.19	6.75	6.65	6.59	6.59