ASB cuts interest rates for business, rural and personal banking customers
25 August 2025
ASB is reducing interest rates across business, rural and personal lending in response to the RBNZ's OCR announcement.
The Housing Variable Rate will drop 15 basis points from 6.44% to 6.29%, while Orbit Variable will move from 6.54% to 6.39%. ASB's Business Base Rate will drop 15 basis points from 11.52% to 11.37% while its Rural Base Rate will also drop by 0.15% from 8.76% to 8.61%.
ASB's Executive General Manager Adam Boyd says "Since May 2023, our customers holding a floating home loan have seen a 2.35% decrease in their lending rate. This reduction in interest payments translates to significant savings for them to spend elsewhere."
Some savings products, including Savings On Call and Savings Plus will reduce by between 20 and 25 basis points.
|
Home Loan*
|
Current Rates
|
New Rates
|
Rate Change
|
|---|---|---|---|
|
Housing Variable |
6.44% |
6.29% |
- 0.15% |
|
Orbit Variable |
6.54% |
6.39% |
- 0.15% |
|
Back My Build |
3.99% |
3.84% |
- 0.15% |
Note - Back My Build applications are no longer open to new customers.
*These changes are effective from Friday 22nd August 2025 for new customers and Wednesday 27th August 2025 for existing customers.
|
Business Loan*
|
Current Rates
|
New Rates
|
Rate Change
|
|---|---|---|---|
|
Business and Rural Floating Base Rate |
4.69% |
4.54% |
- 0.15% |
|
Business Base Rate |
11.52% |
11.37% |
- 0.15% |
|
Rural Base Rate |
8.76% |
8.61% |
- 0.15% |
|
Corporate Indicator Rate |
5.93% |
5.78% |
- 0.15% |
|
Special Purpose Base Rate |
4.50% |
4.25% |
- 0.25% |
*These changes are effective from Thursday 28th August 2025 for both new and existing customers.
|
Savings
|
Band
|
Current Rates
|
New Rates
|
Rate Change
|
|---|---|---|---|---|
|
Savings On Call & ASB Cash Fund* |
All Balances |
0.70% |
0.45% |
- 0.25% |
|
Savings Plus** |
No Bonus |
0.50% |
0.30% |
- 0.20% |
|
Partial Bonus |
0.60% |
0.40% |
- 0.20% |
|
|
Full Bonus |
2.70% |
2.50% |
- 0.20% |
|
|
Headstart* |
All Balances |
2.70% |
2.50% |
- 0.20% |
*These changes are effective from Wednesday 27th August 2025 for new and existing customers.