ASB changes two fixed rates, raising one and lowering another, following its floating rate hike

ASB has today raised its two year mortgage rate and lowered its three year fixed rate.

These changes to fixed rates come after it increased its floating mortgage rate by +10 bps.

The new ASB two year fixed rate is 4.29%, also an increase of +10 bps.

Their new three year fixed rate is now 4.34%, a reduction of -5 bps.

These changes come as credit risk premiums fall back to pre-Brexit levels.

And wholesale swap rates are at or near all-time lows across the whole term range.

ASB's changes keep them competitive with their main rivals. BNZ and Kiwibank now both have a lower 2 year carded rate.

In fact, the 4.19% 2 year offer from BNZ is attractive enough that it will likely be attracting considerable new lending flow. There will be no cost reason for BNZ to modify it, but given moves by other majors to tighten up the difference to their main rivals, BNZ also may take the opportunity to boost their margins.

But ASB now offers the lowest three year fixed rate of any bank.

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

below 80% LVR 6 mths  1 yr  18mth  2 yrs   3 yrs   5 yrs 
  % % % % % %
4.99 4.25 4.89 4.35 4.99 5.30
ASB 4.75 4.25 4.25 4.29 4.34 4.79
4.99 4.25 4.99 4.19 4.49 5.15
Kiwibank 4.75 4.19   4.29 4.49 4.99
Westpac 5.15 4.25 4.95 4.29 4.49 4.89
             
4.50 4.25 4.25 4.29 4.49 4.99
HSBC 4.85 4.19 4.19 4.19 4.49 4.99
HSBC 4.50 4.25 4.15 4.15 4.65 4.99
4.75 4.25 4.35 4.19 4.59 4.99

In addition, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

8 Comments

Surprised ANZ haven't moved rates at all. ASBs 3 year rate now trumps ANZs 2 year rate...

Sub 4% for 2 years and 4% for 3 years is still available with a bit of shopping around

With which bank? No one has offered sub-4 that I've spoken to.

Not listed rates but after the negotiation process

I don't believe the comment that Kiwbank have lower 2 year rate is accurate? Looks the same on the tables.

Just gone on to 5.1% floating

Caleb - ypu5 wanna spill the beans as in whom with?

KB