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Two's the magic number - ASB interest rate that's two for two

As the country prepares to move to level 2, ASB has moved again to support customers by cutting a number of home loan rates, including the two-year special rate to a new low of 2.99% p.a.

Craig Sims, ASB executive general manager Retail Banking says the reduced rate will help New Zealanders manage their home loans during what has been a challenging period, as well as support others into home ownership.

"This has been a difficult time for a lot of our customers. While we have put in place a number of support options, including mortgage repayment deferrals and interest-only payments, we're continually evolving what we are doing to help Kiwis get through the impact of Covid-19. Offering this two-year special rate is part of that.

"We know every bit helps and we're proud to be supporting New Zealanders with this special low rate which we hope will help our customers manage their home loans. We're also confident it will be welcome news to those first home buyers looking to start their home ownership journey," says Sims.

ASB chief economist Nick Tuffley says lower home loan rates will help boost the economy as it gets back up and running, following lockdown.

"The Reserve Bank has taken concerted actions to push interest rates down, and these are clearly bearing fruit by enabling mortgage rates to fall to even lower levels," says Tuffley.

"Lower interest rates like ASB's two-year special rate will put cash into the pockets of the mortgage belt, helping to stimulate and restart the economy. Lower borrowing rates will also help to further alleviate any financial worries that borrowers may have," says Tuffley.

ASB's 18 months special home loan rate is reduced by 50bps to 3.25%; carded 3.75%
ASB's 24 months special home loan rate is reduced by 40bps to 2.99%; carded 3.49%.

These changes are effective from today, Friday 8 May 2020. Lending criteria and conditions apply.

"We know this is an extraordinarily stressful time for Kiwis, and we want our customers to know ASB is here for them. We have been doing our best to help support their financial wellbeing over this time, and will continue to do so," says Sims.

For more information on our rate changes go to https://www.asb.co.nz/legal/notices.html

Term Normal Carded
18 months special rate 3.25% (-50bps) 3.75% (-50bps)
24 months special rate 2.99% (-40bps) 3.49% (-40bps)

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