ASB has kickstarted the 2025 mortgage market competition with -20 bps rate cuts to have the most competitive home loan rate card among the main banks

ASB has cut three of its most popular fixed home loan rates, positioning it as the most rate-competitive main bank at the start of 2025.

It has cut its six month fixed rate to 5.99%, a -20 bps reduction, although this only matched the move that BNZ made last year, and which has also been adopted by recently Westpac, the Cooperative Bank, and ICBC.

But it has also cut its one year rate by -20 bps to 5.59%, lower than any other main bank and only bested by Heartland Bank.

And it has cut -20 bps from its eighteen month fixed rate to 5.39%, matching Heartland Bank, and the lowest carded offer for that term of any bank.

By moving all three key rates down, ASB has kick-started the competition for home loan business in 2025. And their two year fixed rate is lower than most other key rivals as well.

Wholesale rates are in an odd situation at present, at the shorter end, unsure of the direction for 2025. They had been rising from a low point on January 13. Stronger than expected US economic fundamentals have seen a general rise in global background rates, although this rise was halted on Wednesday with what markets thought was a tamer-than-expected US inflation rate. They seem to be signaling that a US Fed cut is still possible, a changed view. We will know for certain on Thursday, January 30 (NZT). Until then, it is up in the air somewhat.

Locally, markets seem certain that the RBNZ will cut its OCR by -50 bps on Thursday, February 19.

So local banks seem to be deciding that the US uncertainty is trumped by the local certainty and that background costs are still moving lower. This is sure to have an echo for savers, although ASB did not announce any term deposit rate cuts to match today's home loan rate cuts. So far, at least. Update: ASB have now cut their TD rates as well. And so has Westpac.

The comparison rate summaries below are for mortgage carded rates. But carded, or advertised, rates are one thing. Actual off-card rates are often lower.

The reader-reported mortgage rates are fluid so we need you to record them in the comment section below, which helps us stay on top of this fast-changing corner of the home loan rates market.

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market, like now.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. 

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at January 17. 2025	%	%	%	%	%	%	%
ANZ	6.24	5.79	5.59	5.59	5.59	6.19	6.19
current reader-reported rates				5.49
	5.99 -0.20	5.59 -0.20	5.39 -0.20	5.49	5.59	5.79	5.79
current reader-reported rates	5.95	5.59	5.39	5.49	5.59	5.69	5.69
	5.99	5.79	5.59	5.59	5.69	5.79	5.89
current reader-reported rates
	6.15	5.79		5.59	5.69	5.79	5.89
current reader-reported rates
	5.99 -0.20	5.79	5.69	5.49	5.59	5.59	5.59
current reader-reported rates
Bank of China	6.19	5.79	5.59	5.49	5.49	5.49	5.49
China Construction Bank	6.24	5.79	5.59	5.59	5.59	6.40	6.40
Co-operative Bank	5.99 -0.20	5.79	5.69	5.59	5.69	5.79 +0.10	5.79 +0.10
Heartland Bank		5.49	5.39	5.39	5.45
ICBC	5.99	5.79	5.59	5.59	5.59	5.59	5.59
	6.24	5.89	5.59	5.49	5.69	5.69	5.69
	6.19	5.69	5.79	5.59	5.59	5.69	5.69