ASB has today changed three fixed mortgage rates, some up, some down.
The one it wants you to notice is its new 2 year 'special' fixed home loan offer.
It is now 4.19%, down -20 bps from 4.39%.
That makes it the equal lowest two year fixed rate in the market, matching the same rate offered by TSB Bank.
Of more importance for ASB, it trumps all its main rivals for that term, and now lower than Kiwibank's 4.25% offer.
But at the same time, it has pulled back from its even lower one year and 18 month 4.15% 'special' rates.
ASB's new rates for those two terms is 4.25%, a rise on +10 bps. Despite the increase, this rate is still very competitive, especially compared with their main rivals.
SBS Bank has the lowest one year fixed rate at 4.10%. HSBC has the lowest 18 month fixed rate at 3.95% (although it has advised that is rate will end on May 20).
Low rates are possible because wholesale swap rates are near record lows, and while banks generally have not passed on these benefits to borrowers, the competitive impulse in this market has kept rates down generally.
Fixed mortgage rate levels step up a lot at the the three year level and longer, although based on the wholesale rate levels this seems hard to justify
ASB's new rates also apply to BankDirect, Sovereign and most rates offered through NZ Home Loans. The change is effective today.
ASB's 'specials' require a minimum of 20% equity in the security property provided to ASB. They also are not available on loans for business purposes, bridging, or HomePlus. But ASB don't seem to require you to have your wages or salary credited to an ASB bank account, a condition many other banks insist on.
Here is where fixed rates stand after the ASB changes:
|below 80% LVR||1 yr||18mth||2 yrs||3 yrs||4 yrs||5 yrs|
In addition, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.