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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