Less than 10 days after previously cutting its fixed home loan rates, ASB is back with more reductions.
And they are cutting term deposit rates too, blaming "wholesale rates".
But that seems a little disingenuous because wholesale rates have in fact moved very little.
But what is happening is ASB is releasing its half yearly results today (Wednesday). And we are less than a week away from the next Reserve Bank Monetary Policy Statement and Official Cash Rate review.
ASB's new lower home loan rates mean they now have the lowest rate set for all the 6, 12, 18 and 24 month fixed terms.
Their new six month rate is 5.89%. This is the lowest of any bank.
Their new one year rate is now 5.49%, also a market low, but they share that rate with Heartland Bank.
Their new eighteen month fixed rate is 5.19%, and easily the lowest level of any bank.
Their two year rate has fallen to 5.29%, a level they share with most other main banks.
None of these rates are as low as Westpac's 4.99% three year fixed offer however.
ASB claims "falling wholesale rates" are behind these move and their term deposit rate cuts.
And the TD rate cuts are sharper than the mortgage rate cuts, essentially -20 bps for both the 6 and 12 month terms.
But on February 3, when they last cut rates, the one year swap rate was 3.51% and the two year 3.44%. Today these two rates open at 3.48% and 3.44%. These net moves hardly justify using wholesale rates as a reason for ASB's adjustments.
More likely, it is competitive pressure in a misfiring housing market that is driving them.
The reader-reported mortgage rates are fluid but may be less frequent now, so please record them if you have them. 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.
And still 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 February 12, 2025 | % | % | % | % | % | % | % |
| ANZ | 5.99 | 5.57 | 5.39 | 5.44 | 5.59 | 6.19 | 6.19 |
| current reader-reported rates | 5.85 | 5.49 | 5.35 | 5.29 | 5.55 | 5.59 | 5.59 |
 |
5.89 -0.10 |
5.49 -0.05 |
5.19 -0.15 |
5.29 | 5.59 | 5.79 | 5.79 |
| current reader-reported rates | 5.85 | 5.49 | 5.12 | 5.17 | 5.29 | 5.69 | 5.69 |
 |
5.99 | 5.55 | 5.39 | 5.29 | 5.59 | 5.69 | 5.79 |
| current reader-reported rates | 5.85 | 5.49 | 5.35 | 5.09 | 5.35 | 5.45 | 5.59 |
 |
5.99 | 5.55 | 5.29 | 5.59 | 5.79 | 5.89 | |
| current reader-reported rates | 5.99 | 5.55 | 5.29 | 5.59 | 5.79 | 5.89 | |
 |
5.99 | 5.54 | 5.34 | 5.29 | 4.99 | 5.49 | 5.59 |
| current reader-reported rates | |||||||
| Bank of China | 5.95 | 5.55 | 5.35 | 5.39 | 5.49 | 5.49 | 5.49 |
| China Construction Bank | 5.99 | 5.57 | 5.39 | 5.44 | 5.59 | 6.40 | 6.40 |
| Co-operative Bank (*=FHB only) | 5.99 | 5.49* | 5.49 | 5.49 | 5.69 | 5.79 | 5.79 |
| Heartland Bank | 5.49 | 5.39 | 5.39 | 5.45 | |||
| ICBC | 5.99 | 5.55 | 5.39 | 5.59 | 5.59 | 5.59 | 5.59 |
 |
6.09 | 5.69 | 5.49 | 5.49 | 5.59 | 5.79 | 5.79 |
 |
5.99 | 5.59 | 5.59 | 5.45 | 5.59 | 5.79 | 5.89 |
Fixed mortgage rates
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Daily swap rates
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