ASB has reduced home loan rates for its three most popular fixed terms.
It has reduced its one year fixed rate 'special' by -10 basis points to 4.29%.
It has reduced its 18 month fixed rate 'special' by -10 basis points as well, now to 4.39%.
And it has reduced its two year fixed rate 'special' by -6 basis points to 4.49%.
These changes position its key mortgage rate offerings lower than all its big bank rivals, except for Kiwibank's 4.39% two year offer.
And of course, the new 18 month rate comes nowhere near the 3.85% HSBC Premier offer.
But the competitive distance opened up against ANZ, BNZ and Westpac will no doubt grab the attention of those rivals.
ASB has a national mortgage market share of about 22%, second only to ANZ which will be watching like a hawk.
In wholesale markets, swap rates have been little changed in more than a year, so wholesale money costs are not behind the move.
And today's REINZ sales volume data shows a real estate market with stable but lowish transaction levels. The likely driver of Thursday's rate changes by ASB is a market presenting an opportunity to nab some additional market share.
Mirror rate changes have also been made by Sovereign.
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 June 14, 2018||%||%||%||%||%||%||%|
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%.