In a bid to support both existing homeowners and aspiring buyers,ASB has slashed its fixed home lending rates for the second time in just two weeks. The bank has lowered rates for 1-year, 18-month, and 2-year terms, providing some much-needed relief in the current market.
The 1-year and 18-month fixed loan terms have both dropped by 5 basis points, now standing at 5.54% and 5.34% respectively. The 2-year term saw a more substantial reduction, a 20 basis point decrease to 5.29%, down from its previous rate of 5.49%.
ASB hasn’t stopped there.They’ve also reduced three of their term deposit rates by between 5 and 10 basis points.
“we’ve reduced our fixed mortgage rates 11 times as July last year, and we’re committed to doing everything we can to support our homeowners and Kiwis looking to buy,” said David Jackson of ASB.
Thes rate adjustments are effective promptly for both new and existing customers.
ASB’s move follows suit with other major banks like BNZ and KiwiBank, who also made cuts to home loan and term deposit interest rates last week. BNZ lowered its 1-year fixed rate by a small margin, from 5.59% to 5.55%. KiwiBank, on the other hand, reduced its 1-year special fixed rate by a more meaningful 24 basis points, also reaching 5.55%
This wave of rate reductions across the major banking institutions signals a potential shift in the housing market,offering a glimmer of hope for both borrowers and potential homebuyers.
How do ASB’s recent mortgage rate reductions align with their commitment to supporting both existing homeowners and potential homebuyers?
Table of Contents
- 1. How do ASB’s recent mortgage rate reductions align with their commitment to supporting both existing homeowners and potential homebuyers?
- 2. ASB’s Mortgage Rate cuts: A Sign of Cooling Housing Market?
- 3. Archyde: David,ASB has considerably reduced its fixed mortgage rates again. What prompted this latest move?
- 4. Archyde: These rate cuts follow a trend we’ve seen in recent weeks, with other major banks like BNZ and KiwiBank also making adjustments. Is this a sign of a broader shift in the housing market?
- 5. Archyde: Some argue that these rate reductions may fuel further house price increases. What’s your take on this?
- 6. Archyde: What message do you have for potential homebuyers and existing homeowners navigating this evolving market?
- 7. Archyde: Will ASB continue to adjust its rates in line with market conditions?
ASB’s Mortgage Rate cuts: A Sign of Cooling Housing Market?
David Jackson, Head of Lending at ASB, recently spoke to Archyde about the bank’s decision to slash fixed home loan rates for the second time in as many weeks.Jackson outlined the bank’s motivations behind the move and what it could mean for the wider housing market.
Archyde: David,ASB has considerably reduced its fixed mortgage rates again. What prompted this latest move?
David Jackson: At ASB, our priority is to support both existing homeowners and those looking to enter the housing market. we understand that the current economic surroundings presents challenges, and we’re committed to doing everything we can to make homeownership more accessible. By reducing our fixed mortgage rates, we aim to ease pressure on borrowers and provide greater certainty in this dynamic market.
Archyde: These rate cuts follow a trend we’ve seen in recent weeks, with other major banks like BNZ and KiwiBank also making adjustments. Is this a sign of a broader shift in the housing market?
David Jackson: We certainly believe the actions taken by several major banks signal a response to the evolving economic landscape.
It’s encouraging to see a level of proactive support for borrowers across the industry. While predicting the future of the housing market is always challenging,we hope these steps create a more stable and encouraging environment for both buyers and sellers.
Archyde: Some argue that these rate reductions may fuel further house price increases. What’s your take on this?
David Jackson: It’s a complex issue. While lower rates can increase borrowing capacity and potentially stimulate demand,it’s important to remember that other factors also influence house prices,such as interest rates set by the Reserve Bank and supply and demand dynamics. We believe these rate adjustments, combined with other responsible lending practices, can contribute to a more balanced and sustainable housing market.
David Jackson: We encourage borrowers to be proactive, speak to their bankers, and explore the available options. This is a time to make informed decisions and seek advice tailored to individual circumstances. ASB remains committed to providing support and guidance to help Kiwis achieve their housing goals.
Archyde: Will ASB continue to adjust its rates in line with market conditions?
David Jackson: We constantly monitor economic indicators and market trends to ensure our rates remain competitive and fair. Our goal is to provide our customers with the most suitable and transparent lending solutions
