ASB and Bank Direct have lowered key fixed mortgage rates, bringing their five year rate down to the lowest level of any of the main banks. Their new five year rate is now 8.50%, down 0.25%. This gives them at least a 0.10% advantage over The National Bank, the closest other main bank. Westpac and ANZ are still at 8.65%, and BNZ is at 8.75% for a fixed five year term. Only HSBC has a lower 5 year rate. at 7.99% for their Premier offer, which has specific conditions that apply. Kiwibank is at 8.69%, TSB is at 8.65, and SBS Bank is at 8.75% ASB also lowered its 4 year rate to 8.20%, also the best 4 year rate by a bank. Its one year fixed rate fell to 6.25%, bringing it in line with most other banks. At the same time, cousin Sovereign lowered its rates by a similar amount as ASB, although their rates tend to be priced 0.15% above ASB levels. You can see all mortgage rates on our comparison page here >> Wholesale swap rates have been gradually shifting lower for quite some time now, while the RBNZ has its OCR on hold and housing loan demand has been very average. This 3 month run of very small decreases seems to have built up enough volume to allow banks to re-price their fixed term mortgage rates. It is probable that other banks will follow ASB's lead if these conditions hold. The mortgage market has reverted to a 'positive rate curve', meaning shorter term rates are now lower than longer term rates. In fact, the lowest rates available are generally floating rates, and the best variable rate is currently BNZ's Total Money floating rate at 5.59%.
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