ASB cuts two mortgage 'special' rates for three and five year fixed terms, and at the same time withdraws its 'healthy cash bonus ' offer

ASB cuts two mortgage 'special' rates for three and five year fixed terms, and at the same time withdraws its 'healthy cash bonus ' offer

ASB and its fellow brands Bank Direct and Sovereign have all announced some selected home loan rate reductions.

Their three year 'special' is now 5.45% a reduction of -14 bps.

They have also reduced their standard three year rate by -10 bps to 6.29%.

And they have reduced their five year 'special' rate to 5.65, also a reduction of -10 bps.

These new fixed rate specials rate apply to customers who have at least 20% equity (i.e. a Loan to Valuation Ratio of less than or equal to 80%), have their salary or wages credited to a main transaction account with ASB and one other ASB product.

These changes make them the most competitive bank for both those specific terms among their main rivals.

However, HSBC has a lower three and five year rate for their Premier offering, and SBS Bank is still offering a 4.99% five year rate "for members".

While the new ASB mortgage 'specials' are competitive, at the same time it appears they have quietly withdrawn their "healthy cash bonus" offer - reference to it has disappeared from their website.

That leave only ANZ, the Co-operative bank and SBS Bank offering cash incentives at this time, and they are all likely to be withdrawn soon.

See all banks' carded, or advertised, home loan rates here.

The current non-rate incentive offers are here.

This is how mortgage rates from the banks compare at 8am Friday, April 10, 2015:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 4 yrs 5 yrs
5.49% 6.09% 5.39% 5.79% 6.49% 5.89%
ASB 5.59% 5.70% 5.39% 5.45% 5.99% 5.65%
5.49%   5.39% 5.55% 5.65% 5.75%
Kiwibank 5.69%   5.39% 5.55% 5.99% 5.79%
Westpac 5.99% 6.09% 5.39% 5.59% 6.49% 5.75%
5.59% 5.49% 5.39% 5.59% 5.75% 5.79%
HSBC 5.29%   5.29% 5.29% 5.29% 5.29%
SBS Bank 5.59% 5.74% 5.19% 5.49%   4.99%*
5.70% 5.80% 5.35% 5.60% 6.40% 5.85%

* Members only, otherwise 5.79%


Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP360 mortgage broker can be contacted by following this link »

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For a 200k mortgage; from 5.75 to 5.65 5 year fixed saved 1k over the 5 years. 
I'd rather have the $2k up front and pay the extra 1k over the 5 year period by locking in the old deal at 5.75. 
At 400k mortgage you'd break even if you ignore the time cost of money (i.e save the 2k over 5 years as opposed to gaining the 2k upfront). 
Prob have to be 450-500k mortgage for the two options to be considered the same; If you are an investor you'd prob take that 2k cash over a 3k saving over the 5 year period (600k mortgage) as you can leverage that up front 2k money and over 5 years end up with a lot more than 3k 

Pity to see the cash bonuses disappear - I'm only a month or two away from drawdown.
Hopefully I can at least negotiate a contribution to legal fees.

Surprised to read the comments from the author that major banks have stepped back from cash contributions/cash bonus. This is a load of bull. All major trading banks ( with the exception of HSBC perhaps) are offering a cash contribution / cash bonus.