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.
|below 80% LVR||6 mths||1 yr||18mth||2 yrs||3 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%.