ASB, Westpac cut floating home loan rates by 25 basis points

ASB, Westpac cut floating home loan rates by 25 basis points

ASB says it's cutting its carded, or advertised, floating and Orbit home loan interest rates by 25 basis points to 6.25%.

The cuts don't take effect until Friday August 7 for existing customers, and next Wednesday - July 29 - for new customers.

Meanwhile, Westpac says it's reducing its "Choices Variable" rate by 25 basis points to 6.15%, its "Choices Offset" by 25 basis points also to 6.15%, and its "Choices Everyday" rate by 25 basis points to 6.25%. 

Westpac says these lower interest rates are effective for new customers on Monday - July 27, but not until Monday August 10 for existing customers.

The cuts come after the Reserve Bank cut the Official Cash Rate by 25 basis points to 3% on Thursday. Several other banks had already announced cuts to their floating home loan rates including BNZ which lopped 35 basis points off giving it the lowest advertised bank floating home loan rate of 5.99%.

And some banks have cut savings rates, including ASB which has pushed through a 25 basis points cut to nearly every term deposit rate.

The new floating and fixed mortgage rates compare as follows:

 

below 80% LVR Floating  1 yr  18mth  2 yrs   3 yrs   5 yrs 
    % % % % %
6.24 4.89 5.55 4.99 5.59 5.79
ASB 6.25 4.89 5.25 5.10 5.39 5.65
5.99 5.19   4.99 5.29 5.75
Kiwibank 6.15 4.89   4.99 5.39 5.60
Westpac 6.40 5.39 5.39 4.89 5.49 5.79
             
6.20 4.89 4.99 4.99 5.20 5.59
HSBC 6.60 4.89   4.89 5.29 5.60
6.14 4.99 4.85 4.99 4.99 5.59
6.49 5.45 5.59 4.99 5.40 5.85

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9 Comments

Chop chop Westpac, no need to hold out this long!

I have to wait till the 7th of August for ASB's cut to take effect so no one is really 'rushing' to pass it on.

"The Commonwealth Bank has become the second major lender to lift the interest rates it charges property investors".
The parent had better tell the child what's going on!

its about time the banks started to diferente interest rates to reflect the different risks from investors via home owners

..

Look out for HSBCs never seen before rates, coming fresh to your wallet August.

China is going to let it's currency fall, exporting deflation around the world.

http://www.wsj.com/articles/china-manufacturing-activity-hits-15-month-l...

"The wheels might not have come off yet but the investor demand that has driven Australia's property boom is starting to wobble."

Just another opinion, of course, but the fact that these sort of views are making it onto the front pages of the MSM has to make one wonder "Why are they being allowed to print it ?" when previously any such opinion was viewed as nigh on treason!
http://www.afr.com/real-estate/apra-bank-loan-changes-put-the-brakes-on-...

Hmmm - the fix maybe in according to some, at least until the zero boundary is reached.

Just one year ago, it seemed unthinkable that officials in Wellington and Sydney, more typically known for their hawkishness and stubborn independence, would join the global race toward zero. But with commodity prices sliding, China slowing and governments reluctant to adopt bold reforms, jittery markets are demanding ever-bigger gestures from central banks. Even those presiding over stable growth feel the need to placate hedge funds, lest asset markets falter. When this dynamic overtakes countries such as New Zealand (growing 2.6 percent) and Australia (2.3 percent), it's hard not to conclude that ultralow rates will be the global norm for a long, long time. Read more