ASB drops fixed interest home loan rates

Two more major banks have announced mortgage rate cuts. Photo / Thinkstock

ASB customers should be in line for a drop in their home loan interest rates this month.

A range of the bank's home loan fixed interest rates, including its one-year and two-year rate specials, will be lowered from 5pm today.

The one-year fixed interest rate will reduce by 0.36 per cent annually to 4.99 per cent while the two-year rate will reduce by 0.29 per cent annually to 5.10 per cent.

The 18-month and two-year fixed rates will see the largest drops - reducing by 0.5 per cent annually.

ASB head of home lending Vince Clark said it was about providing more options for customers.

"Our new lower rates provide a range of competitive options for those customers wanting the flexibility of a short term rate and those wanting the certainty of a longer term rate," he said.

Only the three-year special fixed rate, five-year special rate and five-year fixed rate would see no change.

Reductions would also affect ASB's carded fixed interest rates across terms from six months to four years, he said.