ASB has cut fixed home loan rates across the board, according to updates that have appeared on their website this morning (Thursday).
These cuts give them market-leading positions for 18 months fixed, as well as for 3 year, four years, and five years.
And their two year fixed rate of 3.69% beats all other banks for that term other than China Construction Bank. This level also matches ANZ's, BNZ's and Westpac's new low one year rate.
ASB recently closed a wholesale funding round, raising $600 mln at the remarkably low rate of 1.83%. Given ASB's market share, that will only be enough for a few thousand mortgages, but it is a good advantage anyway.
At the same time, ASB has cut most of their term deposit rates. We will update where the market stands for term deposit rates in a followup story soon.
Wholesale swap rates have held at their new lower level so far all this week, but after today's market rout, it seem slikely that they will sink further from here too.
Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at August 15, 2019||%||%||%||%||%||%||%|
|China Construction Bank||4.70||4.85||3.65||3.90||4.95||4.95|
In addition to the above table, BNZ has reduced its unique fixed seven year rate by -25 bps to 5.70%.