ASB hikes 1-3 year mortgage rates above other banks

ASB hikes 1-3 year mortgage rates above other banks
ASB and subsidiaries Bank Direct and Sovereign have hiked one to three year mortgage rates by between 10 and 30 basis points (bps) in the first mortgage rate move by a major bank in 2010. The new rates are now the highest offered for their respective terms by a bank in New Zealand. ASB raised its one year mortgage rate by 30 bps to 6.55%; its 18 month rate by 30 bps to 7.05%; two year by 30 bps to 7.55%; and three year by 10 bps to 8.1%. See and compare all mortgage rates offered in New Zealand here. One basis point is 0.01%. Bank Direct made the same changes, and offers the same rates as ASB for those terms. Sovereign's rates are 15 bps above ASB's rates. Fixed mortgage rates ended their last round of hike of one to two year rates the week before Christmas. While variable rates remain on hold for the time being, fixed mortgage rates are rising as the market anticipates Official Cash Rate hikes from around the middle of 2010.

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