ASB Lowers Rates Following OCR Decrease

Wednesday, 9 October 2024, 2:12 pm
Press Release: ASB Bank

ASB is dropping interest rates across personal, business and rural lending following today’s decision by the RBNZ to decrease the Official Cash Rate (OCR) by 0.50%. The move comes hours after ASB lowered its fixed mortgage rates across several popular terms.

ASB’s variable home loan rate will fall by 50 basis points from 8.39% to 7.89%, while the Orbit rate drops from 8.49% to 7.99%. ASB’s Business and Rural Floating Base Rate is moving from 6.69% to 6.19%.

ASB’s Executive General Manager Personal Banking Adam Boyd says “We’re pleased to be announcing substantial cuts to our floating home loans, as well as our business and rural rates, in response to the OCR decrease. The various rate reductions we’ve announced today will impact more than 120,000 customers and we hope this will take some pressure off our customers. We do expect this downward OCR trend to continue into 2025 which will provide further relief.”

The OCR decrease is also being passed on to some of ASB’s savings rates. Savings On Call will move from 2.65% to 2.15% while ASB’s youth account, Headstart will shift from 4.75% to 4.15%.

Home Loan*	Current Rates	New Rates	Rate Change
Housing Variable	8.39%	7.89%	- 0.50%
Orbit	8.49%	7.99%	- 0.50%
Back My Build	5.94%	5.44%	- 0.50%

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

*These changes are effective from 17 October 2024 for new customers, and 24 October 2024 for current customers.

Business Loan*	Current Rates	New Rates	Rate Change
Business and Rural Floating Base Rate	6.69%	6.19%	- 0.50%
Business Base Rate	13.52%	13.02%	- 0.50%
Rural Base Rate	10.76%	10.26%	- 0.50%
Corporate Indicator Rate	7.93%	7.43%	- 0.50%
Special Purpose Rate	6.50%	6.00%	-0.50%

* These changes are effective from 17 October 2024 for both new and existing customers.

Savings	Band	Current Rates	New Rates	Rate Change
Savings On Call & ASB Cash Fund	All Balances	2.65%	2.15%	- 0.50%
Savings Plus	No Bonus	2.30%	1.70%	- 0.60%
	Partial Bonus	2.40%	1.80%	- 0.60%
	Full Bonus	4.75%	4.15%	- 0.60%
Headstart	All Balances	4.75%	4.15%	- 0.60%

*These changes are effective from 24 October 2024 for new and existing customers

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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