ASB reduces two fixed home loan rates, taking its fixed three year offer to a market leading 4.79%. The Co-operative Bank also trims some rates

Home loan rates are continuing to be adjusted lower for selected terms.

These changes come even though the RBNZ is not changing official rates.

ASB has today (Thursday) reduced its two year rate by -4 bps to 4.55%, matching ANZ with a rates that is mid-range for that term.

But they have also reduced their three year rate by -10 bps to 4.79% and this new rate is market-leading.

ASB's new three year rate beats Kiwibank's 4.85% rate by -6 bps, the next-lowest carded rate offer in the market.

The difference between ASB's new three year rate and the lowest two year rate by both BNZ and Kiwibank at 4.49% is now only 30 bps. (HSBC Premier is still offering 4.29% however if you can meet their criteria.)

Yesterday, the Co-operative Bank also lowered some home loan rates. Their 18 month fixed rate was cut by -4 bps to 4.95%, and their three year fixed rate was cut by -10 bps to 4.89%. Neither are market-leading positions.

In wholesale markets, two year swap rates had risen by +17 bps from February to mid April, but they have pulled back about -5 bps since.

Three year swap rates had risen +14 bps over the same period, but they too have retreated -5 bps since.

Mortgage rate changes are now fairy small, indicating that banks' room to move is limited. Reversions are also common, so lower rate announcements are often limited and followed by quiet rises back to prior levels. That suggests borrowers need to take opportunities when they appear. And, as always, shop around and negotiate.

Both the ASB rates mentioned here, like the Co-operative Bank ones, are their 'specials' (or in the Co-op case, for 'owner-occupiers'). Higher rates apply for 'standard' lending. ASB's 'specials require at least 20% equity in the secured property. Unlike some other banks, they don't overtly require salary credit to one of their current accounts, nor the taking on of 'other products'.

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

Here is the full snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 23, 2018	%	%	%	%	%	%	%
	4.99	4.35	5.15	4.55	4.99	5.89	6.09
	4.95	4.39	4.49	4.55	4.79	5.39	5.59
	5.35	4.39	5.05	4.49	4.99	5.89	6.09
	4.99	4.29		4.49	4.85	5.19	5.39
	5.25	4.39	5.15	4.55	4.94	5.89	5.59
	4.80	4.39	4.45	4.59	4.89	5.39	5.59
	4.85	4.19	4.19	4.29	4.89	5.29	5.59
	4.99	4.29	4.59	4.64	4.99	5.49	5.55
	4.85	4.29	4.39	4.55	4.89	5.55	5.69

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

And TSB still has a 10-year fixed rate of 6.20%.