ASB joins rate cutters

ASB Bank has joined a number of other banks in cutting fixed-term mortgage rates, slashing its one, two and three-year rates.

Monday, May 14th 2012, 9:04PM

by Jenny Ruth

The bank has matched ANZ National Bank's 5.25% one-year rate, shaving off 45 basis points, cut its two-year rate by 30 points to 5.55%, matching the Public Trust's lowest two-year rate in the market, and cut its three-year rate by 35 points to 5.75%.

SBS Bank and sister bank HSB Bank currently have three-year fixed "specials" at 5.65% but otherwise ASB's new rate is the lowest in the market. To qualify for the SBS rates a borrower has to have a minimum of 30% equity.

"(Falling wholesale interest rates) have meant that the cost to ASB of funding some of our fixed home loans has reduced so we are directly passing on these savings to our customers," ASB products and business banking strategy general manager Shaun Drylie says.

Kiwibank has the lowest one-year rate at 4.99%, but, like SBS, borrowers need at least 30% equity.

On the weekend, BNZ cut its 18-month fixed Classic mortgage rate from 5.89% to 5.10%. Westpac also cut some rates.

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