This morning another major bank has followed the market signals higher that were started by ANZ.
Today, ASB and its subsidiary brands Bank Direct and Sovereign raised all its fixed rates to the ANZ levels.
ASB follows Westpac in adopting these new ANZ levels.
The increases range from +14 bps to +25 bps.
The new ASB six month fixed rate is now 5.55%, up 20 bps from 5.35%.
Their one year rate has been raised +16 bps to 5.85% from 5.69%.
Their 18 month rate has been raised the least. up +14 bps to 5.99%.
For the 2 year fixed rate, it has been increased by +20 bps to 6.49% from 6.29%.
The three year rate is up +25 bps to 6.85% from 6.60%.
And the four and five year fixed rates are both raised by +20 bps to 7.19% and 7.40% respectively.
ASB's 'special offer' of 0% interest for one month on a 3 year fixed term rate of 6.29% is still available. (This works out to be an effective rate of about 6.12%, a 17 bps discount.) It's an offer that will end on April 17.
After all these changes, the rate offers by ASB are undistinguished from ANZ or Westpac. BNZ and Kiwibank are the two main banks that have lower offers still in the foxed rate mortgage market.
On Monday morning, Kiwibank raised its 4 and 5 year fixed rates to 6.99% and 7.20%, up +29 bps and +30 bps respectively.
At the same time ASB and Bank Direct increased two term deposit rate terms, with their nine month rate rising +20 bps to 4.00% and their one year term deposit rising +10 bps to 4.10%.
ASB also increased its Savings Plus rates by +25 bps. This is a bonus savings product that could yield up to 4.25% pa if no withdrawals are made in a calendar quarter. Of all the rate changes made today by ASB, this one is the only one where it is offering anything better than its main rivals.
While the mortgage and term deposit increases are effective now, ASB has held off making the Savings Plus increases effective until April 1.
See all banks' carded, or advertised, home loan rates here.
ASB's latest fixed rates compare as follows:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.85% | 5.99% | 6.49% | 6.85% | 7.40% |
 |
5.85% | 5.99% | 6.49% | 6.85% | 7.40% |
 |
5.69% | 5.85% | 5.95% | 6.29% | 7.20% |
| Kiwibank (updated) | 5.69% | 5.99% | 6.40% | 7.20% | |
 |
5.85% | 5.99% | 5.95% | 6.85% | 7.40% |
| Co-op Bank | 5.49% | 5.85% | 5.99% | 6.35% | 7.10% |
 |
5.59% | 5.79% | 6.55% | 7.20% | |
 |
5.50% | 5.75% | 5.90% | 6.20% | 6.85% |
| TSB | 5.40% | 5.85% | 5.99% | 6.40% | 7.20% |
Updated with Kiwibank's increases.
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