ASB has introduced a new five-year home loan interest rate of 6.85%, which gives it the lowest advertised, or carded, rate among the big banks.
ASB says its new "special" five year rate applies to new and existing lending for customers who have at least 20% equity, an ASB credit card and have salary or wages credited to their main transaction account with ASB.
Its standard five-year rate is 7.40%.
ASB has also trimmed four basis points off its two-year fixed rate special, dropping it to 5.85%.
Borrowers also require 20% equity to get that rate.
“This new five-year fixed term special provides customers with a great rate and certainty over the long term as we approach the Reserve Bank’s review of the Official Cash Rate on 12 June,” Shaun Drylie, ASB general manager of product and strategy, said.
SBS Bank currently has the lowest carded five-year bank rate at 6.79%.
Other banks' standard, carded five-year rates range from 6.89% to 7.40%.
See all banks' carded, or advertised, home loan rates here.
The ASB rate changes took effect from 5pm on Friday, June 6.
This is how the new ASB mortgage rates compares:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.85% | 6.55% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.85% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.99% |
| Kiwibank | 5.85% | 5.85%* | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 5.85% | 6.25% | 6.89% |
| Co-op Bank | 5.85% | 5.85% | 5.85% | 6.25% | 6.89% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.70% | 5.85% | 5.99% | 5.95% | 6.79% |
| TSB Bank | 5.70% | 5.85% | 5.80% | 6.50% | 7.20% |
* only as part of their 60/40 'special' deal. Otherwise 6.19%.
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