ASB Drops All Home Lending Rates Following OCR Decrease

Wednesday, 14 August 2024, 2:37 pm
Press Release: ASB Bank

ASB is dropping all interest rates across fixed and floating lending in response to the RBNZ’s decision to decrease the Official Cash Rate (OCR) by 0.25%, and downward movements in the wholesale money market. The latest moves follow ASB’s rate reductions last week made to mid-and longer-term fixed lending rates.

ASB is lowering its variable home loan rate by 25 basis points from 8.64% to 8.39%, while the Orbit rate drops from 8.74% to 8.49%.

In addition, the bank has reduced all of its fixed home lending rates, including the most popular terms. Its 6-month rate drops 10 basis points from 6.99% to 6.89%, while its 1-year term drops 26 basis points from 6.85% to 6.59%. ASB’s 18-month term sees a 34 basis point drop from 6.49% to 6.15%, while the 2-year rate falls below 6%, dropping 26 basis points to 5.99%. ASB’s longer term rates at the 3-, 4- and 5-year terms all drop 10 basis points respectively to 5.89%. All fixed home lending decreases are effective from 20th August 2024.

ASB’s General Manager Wealth, Insurance and Partnerships Jax Mitchell says “We know today’s OCR decision and our rate adjustments will be welcome relief for many New Zealanders. The decreases to our floating mortgage rates, as well as our business banking rates, will help alleviate some of the pressure being felt by some of our homeowners, as well as our rural and business customers.

“The recent falls to wholesale rates also mean we’re able to reduce our fixed home lending terms. This is the twelfth time since November we’ve lowered our fixed mortgage rates, which more than 90% of our customers hold, and will be good news for those customers refixing soon as well as prospective homebuyers.”

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The OCR decrease is also being passed on to some of ASB’s savings rates. Savings On Call will move from 2.90% to 2.65% while ASB’s youth account, Headstart will shift from 5.00% to 4.75%. Changes to these savings’ rates are effective from 29th August 2024.

Rates on ASB’s Business Base Rate drop 25 basis points, moving from 13.77% to 13.52%, while the Rural Base Rate also decreases by 25 basis points, moving from 11.01% to 10.76%. The Corporate Indicator Rate will shift from 8.18% to 7.93% and the Special Purpose Base Rate will go from 6.75% to 6.50%. These changes are effective from 29th August 2024.

In addition to lowering some of its savings rates, ASB has lowered some of its term deposit rates. The 9-month, 12-month, 18-month and 24-month term deposit rates all drop by between 10 and 20 basis points.

Home Loan*	Current Rates	New Rates	Rate Change
Housing Variable	8.64%	8.39%	- 0.25%
Orbit	8.74%	8.49%	- 0.25%
Back My Build	6.19%	5.94%	- 0.25%

Note - Back My Build applications are no longer open to new customers.

Business Loan	Current Rates	New Rates	Rate Change
Business Base	13.77%	13.52%	- 0.25%
Rural Base	11.01%	10.76%	- 0.25%
Corporate Indicator	8.18%	7.93%	- 0.25%
Special Purpose	6.75%	6.50%	- 0.25%

Savings	Band	Current Rates	New Rates	Rate Change
Savings On Call & ASB Cash Fund	All Balances	2.90%	2.65%	- 0.25%
Savings Plus	No Bonus	2.55%	2.30%	- 0.25%
	Partial Bonus	2.65%	2.40%	- 0.25%
	Full Bonus	5.00%	4.75%	- 0.25%
Headstart	All Balances	5.00%	4.75%	- 0.25%

Fixed Home Loan	Current Rates	New Rates	Rate Change
6-months	6.99%	6.89%	- 0.10%
1 Year	6.85%	6.59%	- 0.26%
18 Months	6.49%	6.15%	- 0.34%
2 Years	6.25%	5.99%	- 0.26%
3 Years	5.99%	5.89%	- 0.10%
4 Years	5.99%	5.89%	- 0.10%
5 Years	5.99%	5.89%	- 0.10%

Term Deposits	Current Rates	New Rates	Rate Change
9 Months	5.70%	5.50%	- 0.20%
12 Months	5.50%	5.40%	- 0.10%
18 Months	5.20%	5.00%	- 0.20%
24 Months	4.90%	4.80%	- 0.10%

ASB has practical information for customers on the current interest rate environment available on its website as well support to help customers take control of their financial wellbeing and achieve their goals at its Financial Wellbeing Hub.

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