ASB increases one and three year mortgage rates by 20 and 15 basis points respectively

ASB increases one and three year mortgage rates by 20 and 15 basis points respectively

ASB has increased its advertised one and three-year mortgage interest rates by 20 and 15 basis points, respectively.

ASB, along with subsidiaries Bank Direct and Sovereign, has raised its one-year rate 20 basis points to 5.45% and its three-year rate 15 basis points to 5.90%.

The increases come despite a 10 basis points drop in the one-year swap rate this week to 2.62% and a 15 basis points fall in the three-year rate to 2.84%.

However, prior to this week swap rates had been on the rise recently (see chart at the bottom of the story).

In terms of advertised one-year rates, ASB's new rate is below sister banks ANZ and National's 5.50% and Westpac's 5.49%, but well above TSB Bank's 5.20%, and the 5.25% offered by BNZ, SBS Bank, Kiwibank and the Co-operative Bank.

ASB's new three-year rate is the same as ANZ, National and Westpac's, but higher than the 5.75% advertised by BNZ, TSB, Kiwibank and the Co-operative Bank, and SBS Bank's 5.85%.

See all advertised bank mortgage rates here.

ASB's hikes come after it increased its six-month and 18-month rates last week, as ANZ and National cut their six-month and 18-month rates and lifted their one-year and two-year rates. Westpac also increased its one and three-year rates on Tuesday.


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Too volatile to gamble on.
As soon as any sign of improvement occurs those low long term rates will vanish.  It's nice to think that you could save a third on your mortgage interest payments but that is unlikely I reckon.
If you want to gamble on short term rates being around 5% for the next few years, you will probably end up about the same as taking a longer term fixed at under 6% right now, so it would pay to ease the risk and put some a good chunk on a favourable rate while you can.

Heads..and if it ever did get'd then be then looking for 2%. Youre the absolutely classic bear at the bottom that gets BURIED...still, you'll make some lucky investor on the other side really really really happy when you, although the few like minded,  start paying him a rising payment each qtr once rates eventually start moving. Its what makes a market, winner and losers

2.99% fixed for 5 years. The lowest five-year fixed rate mortgage ever seen is being launched today in Britain by HSBC, one of the biggest banks in the world.
Borrowers with a 40pc deposit or that much equity in their home will be able to lock into a rate of 2.99pc fixed for five years.


NZ Heads - your prediction for rates may be too high. Could see sub 3% mortgage rates here too!

Actually, they may be paying us 3% to borrow their parked up money sitting idle  -  negative interest rates.....    come and get it ....   
5 years interest free Houses  -   new product line from Harvey Norman.
Must be annoying when noone believes that interest rates will ever rise again (generally)  -  they used to be able to scare the peasants with "get in quick, then fix before we crank up rates on you".  Not working anymore.