ASB cutting home lending and term deposit rates

ASB today said it cut its two-year rate by 16 basis points from 7.05 per cent to 6.89 per cent.

The bank’s three-year rate has dropped by 10 basis points from 6.85 per cent to 6.75 per cent.

ASB said it had also adjusted some of its long-term term deposits.

It has lowered the 24 month-term deposit to 5.80 per cent and all terms between 36 and 60 months to 5.50 per cent.

“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” ASB’s Adam Boyd said.

The Herald yesterday reported New Zealand mortgage rates could be heading south early in the New Year if the swaps market is anything to go by.

The key two-year swap rate, which has an influence on mortgage rates, has been heading sharply lower for the last couple of months.

This week, the rate went to 4.79 per cent. That was down by about one full percentage point from early October.

And earlier this week, ANZ dropped some of its term deposit and home loan rates.

The country’s largest bank said it had made changes to some rates to reflect the recent decrease in wholesale swap rates.

ANZ cut its two-year term deposit by 25 basis points to 5.75 per cent and its four-year term deposit rate dropped 15 basis points to 5.3 per cent and its five-year rate by 25 basis points to 5.2 per cent.

An ANZ spokeswoman this week said the bank’s most popular term deposit terms of six months and one year had not changed.