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ASB Drops All Home Lending Rates Following OCR Decrease
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.”
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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In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.
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