Strong mortgage competition among banks sees both ASB and Co-op Bank reduce a key mortgage rate to match their main rivals

Strong mortgage competition among banks sees both ASB and Co-op Bank reduce a key mortgage rate to match their main rivals

ASB has cut its one year fixed mortgage rate to 5.19% from 5.45%.

The Co-operative Bank has also made a change, reducing its one year rate to 4.99% from 5.25%.

Both changes are effective Monday, April 22, 2013.

It brings ASB into line with ANZ and Westpac who already offer a one year fixed mortgage rate of 5.19%.

The new rate also applies to BankDirect and to Sovereign Home Loans as both brands are owned by ASB.

There are no restrictions announced with either rate cuts.

The new rates are not the lowest one year fixed rate offered by a bank.

Co-op Bank joins Kiwibank who also offers a 4.99% unrestricted one year fixed rate, as does HSBC for their qualifying Premier clients.

The lowest rate offered by any bank is TSB's fixed 15 month 'special' of 4.95% but this rate does come with LVR restrictions.

Kiwibank was the last bank to cut rates which it did two weeks ago.

See all banks' advertised home loan rates here.

This positions the ASB's rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
           
ANZ 5.19% 5.45% 5.80% 6.10% 6.30%
ASB 5.19% 5.45% 5.75% 5.95% 6.25%
BNZ 5.25% 5.40% 5.80% 6.10% 6.30%
Kiwibank 4.99% 5.25% 5.65% 5.99% 5.99%
Westpac 5.19% 5.40% 5.90% 6.15% 6.25%
           
Co-op Bank 4.99% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 5.25% 5.30% 5.65%   5.99%
TSB 5.25% 5.30% 5.75% 6.10% 6.30%

TSB Bank has a lower rate Special 15 month offer of 4.95%.

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Cuts, cuts, cuts   .... watch those lending rates tumble.
More to come.
Stay floating and ride the trough.

Cheap credit...bubble expanding...what's one more year going to matter...nothing can go wrong...

Well that's the way it goes Mr Kimy. The simpletons that pay interest are always the ones on the bottom end of the string. Try making some of that toxic cash you despise, might stop you complaining so much.

Hi Kimy,
Good on you. Can i at least get the color of the bank. Coming off a high rate in a few day.. will be nice to get this rate of your..
regards,
arvin

On we go in the "game" round and round until the music stops...and the OBR thieving kicks in...and the run on all other bank deposits....and property falls 10% overnight...and the media ask "how could this happen...why were we not warned"..
Do not worry...you are in safe hands...the RBNZ has a liferaft ready...just the one...pollies and bankers only!