Another major bank cuts home loan rates

Thursday, 20 March 2025

ASB has cut a number of its fixed home loan rates.

It said it was the fifth fixed mortgage rate drop this year.

The six-month rate drops by 10 basis points to 5.79%, and the four and five-year rates by 20 and 10 basis points, respectively, to 5.59% and 5.69%.

ASB executive general manger personal banking Adam Boyd said a growing number of customers were splitting their mortgages across different terms.

The drops take effect immediately.

Earlier, Squirrel chief executive David Cunningham said borrowers were frequently choosing a one and two-year split or a two and three-year.

'The 4.99% [two-year] rate has been an absolute game-changer,' he said.

'Everyone has gone from short terms to the traditional two-year which New Zealanders have loved for decades.

'We're seeing almost no money going floating and a very low level into six-month fixes because those rates are materially higher.'