__[UPDATED]__ANZ National have now come through with rate cuts across their fixed card. TSB has also cut rates, but only for terms of 18 months or more. BNZ is the only bank not to cut rates in this round - however we expect them to announce changes soon.
The changes keep flowing ASB (along with Bank Direct, Sovereign and NZ Home Loans) have reduced fixed home loan interest rates by up to 0.40%.
The new rates include a 40 point reduction in the 3 year rate to 6.30%; a 35 point cut in the 4 year rate to 6.70%; and 30points off its 18 month, 2 year and 5 year rates.
ASB now offers the most competitive 18 month, 3, 4 and 5 year fixed rates among the major banks, however borrowers favour shorter term rates at the moment.
In the key one-year term ASB is competitive, but other lenders have better offerings. In fact Westpac, Kiwibank and The Co-Operative Bank tend to be the leaders in the shorter term rates.
Have a look at the table here, where it has been sorted on one-year rates lowest to highest here.
Also SBS and HBS have made a change but only shaved a few points off the two-year rate. The Co-Operative Bank (formerly PSIS) has also made cuts to all its fixed rates.
