Third major bank this week cuts some mortgage rates

ASB has announced changes to some of its home lending and term deposit rates, in the wake of cuts by other major banks earlier this week.

On Tuesday, ANZ announced cuts to some mortgage rates– and yesterday, BNZ followed suit.

In a statement this morning, ASB said it's adjusting rates as well.

The bank's two-year home lending rate is dropping by 16 basis points from 7.05% to 6.89%, and its three-year rate has dropped by 10 basis points from 6.85% to 6.75%.

For savers, however, ASB's 24 month term deposit rate has been lowered from 6% to 5.80% and its 36, 48 and 60-month term deposit rates have been lowered from 5.55% to 5.50%.

"Today's rate changes reflect falling wholesale rates in recent weeks and will be welcome news for many of our customers, particularly as our two-year home lending term continues to grow in popularity," said Adam Boyd, the bank's executive general manager of personal banking. The new rates are effective from today.

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NZ's largest bank cuts some home loan rates

Fixing for a shorter term may make sense as the best option for borrowers, according to ANZ economists.

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Second major bank cuts some lending rates

Another follows suit after the country's biggest lender, ANZ, moved on lending and deposits due to a fall in wholesale rates, which partly fund banks' lending.

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December 21, 2023

For ANZ, the standard rate for a two-year fixed-term home loan with the bank was cut by 20 basis points to 7.49% per annum from 7.69%. The standard rate for a three-year fixed-term home loan was reduced by 14 basis points to 7.35% per annum, from 7.49%.

BNZ has lowered its standard two-year fixed rate by 16 basis points to 7.49% and its three-year fixed rate by six basis points to 7.39%. It also lowered special mortgage deals.