ASB has responded immediately to the RBNZ's decision to reduce the Official Cash Rate by lowering its variable home loan and Orbit home loan rates.
ASB's variable home loan rate is reduced by 0.50% from 5.70% p.a. to 5.20% p.a.
ASB's Orbit home loan rate is reduced by 0.45% from 5.75% p.a. to 5.30% p.a.
These changes are effective Wednesday 14 August for new customers and Wednesday 21 August for existing customers. Lending criteria and conditions apply.
ASB has also lowered its 2 year fixed home loan rate by 4bps to 3.75% p.a. This fixed rate change is effective Thursday 8 August.
"We are constantly reviewing our rates to make sure they're competitive, and as the bank dedicated to helping all New Zealanders progress financially that means also carefully considering how to be fair and support depositors.
"As a result, ASB is limiting the interest rate reduction by 5bps on its most popular retail savings account, Savings on Call.
"This is about meeting the expectations of our customers and making a deliberate choice to put them first. We believe our new lower rates provide a fair and considered outcome for borrowers while also balancing the needs of our savings customers," says Craig Sims, ASB executive general manager, Retail.
ASB is encouraging home owners to make the most of the current low interest rate environment.
"Now is an ideal opportunity for customers to review their home loan to see if they can increase their financial wellbeing. For example, customers should consider whether to adjust the ratio of fixed versus floating if they have split their mortgage or whether changing from monthly to fortnightly payments would save them money. This is also an opportunity for customers to make extra payments or increase their regular payments while interest rates are low.
"A home loan is often a family's biggest expense and we welcome any discussion with existing or future customers to make sure they're doing what they can to accelerate their financial progress," says Mr Sims.
For more information on our rate changes go to https://www.asb.co.nz/legal/notices.html
|Term||Interest rate p.a.||Change p.a.|
|Variable home loan rate||5.20%||-0.50%|
|Orbit home loan rate||5.30%||-0.45%|
|2 year fixed home loan rate||3.75%||-0.04%|