ASB cuts 1 to 5 year fixed home loan rates

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ASB, Bank Direct and Sovereign have cut their one to five year fixed rate home loan by between 10 and 20 basis points.

Thursday, January 26th 2012, 11:29PM

The move comes after the Reserve Bank left the OCR unchanged and the US Federal Reserve said it doesn't plan to move its cash rate until 2014.

ASB's cuts get bigger with the longer the term of the fixed loan. It has taken 10 basis points off the one-year rate, 15 points off the two-year rate and 20 points off rates of three years or more.

ASB's changes differ from the cuts made by two other banks earlier this month. ANZ National and SBS focused their cuts on shorter term rates. SBS and its subsidiary HBS made small cuts to six month and one-year rates, with ANZ and the National Bank made cuts from 6 months to two years.

ASB says its moves are about giving customers competitive options.

"Given the interest rate outlook following the RBNZ rate announcement, we think it is important that customers have competitive options to consider between floating and fixed rates," ASB general manager lending Mike Davy says.

"ASB is offering competitive fixed rates in all terms, including the most competitive 18 month and 3 year rates among the major banks."

See for yourself how ASB compares here. Use the arrows at the top of the table to sort rates from highest to lowest (and vice versa).  

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