ASB has today changed all their fixed home loan rates, raising them for terms to two years, and lowering some of them for longer terms.
These changes come after some fairly substantial moves over the past week in wholesale money costs.
The changes noticeably 'flatten' their mortgage rate offering. That is best shown by comparing their standard 5-yr less 1-yr rate differentials.
This 1-5 differential has suddenly shifted to just +0.90%, down from +1.55% before these changes were announced.
(The flattening effect is actually not as marked in practice when the old 'specials' are taken into account.)
At the same time, ASB has ended their attractive three year and five year 'specials'.
The changes are significant.
The new 6 month fixed rate has moved to 5.80%, up 15 bps from 5.65%.
The new one year fixed rate has moved to 6.09%, up 24 bps from 5.85%.
The new 18 month fixed rate has moved to 6.30%, up 31 bps from 5.99%.
Their 2 year 'special' (conditional) fixed home loan rate is unchanged at 5.85%, but their non-special standard rate has been moved up to 6.40%, a rise of 21 bps from 6.19%.
Going the other way - sort of - their three year 'special' rate of 6.25% has been replaced by a 'standard' rate of 6.65%. Compared with the 'special' that is an increase of 40 bps, but compared with the previous 'standard' rate it is a decrease of 20 bps from 6.85%.
Their four year rate has got a real cut; it falls to 6.80% from 7.19% a drop of 39 bps.
Their five year rate is also a split result. The new rate is 6.99%, but the old 'special' has now ended and that makes an effective rise of 14 bps. But it is a fall of 41 bps compared with the old standard 5 year rate.
Similar changes apply to BankDirect and to Sovereign.
See all banks' carded, or advertised, home loan rates here.
This is how the new ASB mortgage rates compare:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.85% | 6.55% | 7.40% |
 |
6.09% | 6.30% | 5.85% | 6.65% | 6.99% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.99% |
| Kiwibank | 5.85% | 5.85% | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 5.85% | 6.25% | 6.89% |
| Co-op Bank | 6.00% | 6.00% | 6.00% | 6.25% | 6.89% |
 |
5.85% | 5.99% | 6.25% | 6.99% | |
 |
5.70% | 5.85% | 5.99% | 5.95% | 6.79% |
| TSB | 5.70% | 5.85% | 5.80% | 6.50% | 7.20% |
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