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ASB cuts two-year home loan rate

ASB has dropped its two-year fixed home loan rate from 4.35 per cent to 4.15 per cent. The bank said it followed a drop in its funding costs as a result ofmoves on money markets. Craig Sims, executive general manager retail banking, said the change gave home buyers options in a rising rate environment. ‘‘It’s been a challenging year for many,’’ he said. ASB rivals ANZ, Westpac, Kiwibank and Bank of New Zealand were all charging 4.35 per cent for their two-year fixed rate home loans for people with equity of 20 per cent or more in their homes. The two-year fixed rate offered borrowers the chance to fix some home loan costs, Sims said. The Reserve Bank of NewZealand Te Pūtea Matua haswarned that homeowners face rising home loan rates. The bank’s data showthat the average newtwo-year rate increased from 3.47 per cent in June to 4.22 per cent in October. A $500,000 mortgage over 25 years would cost $1262 a fortnight at 4.35 per cent and $1237 at 4.15 per cent.

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2021-12-08T08:00:00.0000000Z

2021-12-08T08:00:00.0000000Z

https://fairfaxmedia.pressreader.com/article/281698323038591

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