ASB Bank has announced on Friday that it will lift its home loan and saving deposits rates in response to an increase in the Official Cash Rate.
The Reserve Bank on Wednesday announced New Zealand’s OCR would be lifted by 0.25 basis points to 1 per cent.
It follows an increase in November 2021 by 0.25 per cent to 0.75 per cent.
In response to the OCR increase, ASB’s Housing Variable rate will now move from 4.60 per cent to 4.85 per cent while the ORBIT home loan rate will move from 4.70 per cent to 4.95 per cent, the bank said in a media release.
ASB’s low cost Back My Build rate for new home builds, which is linked to the OCR, will increase to 2.54 per cent.
There will also be changes to the saving deposits rates, with the maximum interest rates on Savings Plus and Headstart deposit accounts increasing from 0.65 per cent to 0.75 per cent.
New variable rates are effective for all new housing loans, including Back My Build, from March 2, 2022 and March 9, 2022 for existing loans.
Savings Plus changes apply from April 1, 2022. All other retail savings rates will take effect from March 1, 2022.
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