ASB lowers one two-year rate

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ASB has cut its two-year home loan rate for borrowers with at least 20% equity in any deal.

Monday, November 11th 2013, 7:52AM 1 Comment

The new rate for ASB and its subsidiary Bank Direct is 5.59%.

The offer is for customers who either have, or get, an ASB credit card and an active transactional account, and who have at least 20% equity (a loan-to-value ratio of less than or equal to 80%).

Interestingly the bank only lowered the rate for loans with an LVR of 80% or less. The rate for low equity loans remains unchanged at 5.95%.

The new rate is a cut of 11 basis points and the difference between its two rates is 36 basis points. Added to that deals with a LVR higher than 80% are also subject to low equity margins.

But for those borrowing more than $100,000 ASB may throw in a new Sony home theatre system and up to $1,000 in cash.

The new ASB rate is competitive with rival offerings. The Co-operative Bank has a 5.59% rate, and SBS and HBS banks have a 5.45% rate for borrowers with at least 20%.

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