Major bank ASB says it has lowered all fixed home lending term rates. 

The moves come a week after the Reserve Bank cut the official cash rate (OCR). 

“Effective immediately, all terms have been reduced by up to 20 basis points, with five of the seven terms now at a rate less than 6%,” the bank said today. 

ASB said its two-year rate will drop to 5.89%. 

“The 18-month rate will drop 16 basis points to 5.99%, while the three and four-year rates drop 10 basis points to 5.79%,” the bank added. 

ASB said its five-year rate had dropped 20 basis points to 5.69%. 

“The one-year rate drops 14 basis points to 6.45%, and the six-month rate is reduced slightly to 6.85%,” ASB added. 

“Since wholesale rates started to fall in July, we’re pleased to have been able to reduce our rates for ASB home loan customers four times,” ASB general manager Jax Mitchell said. 

ASB said it had also dropped eight of its 13 term deposit rates, between the six-month and 60-month terms, by between 10 and 30 basis points each. 

Kiwibank yesterday said its one-year fixed rate would fall 30 basis points to 6.45% (special) and 7.35% (standard). 

It also announced changes to its two to five-year special fixed-term home loan rates. 

Yesterday, Rabobank said it had decreased its PremiumSaver rate from 5.25% to 5%. 

Sharesies this week also cut its interest rate for Shareses Save accounts, from 4.6% to 4.35%. Its 5% per annum special rate for August still applied. 

Last week’s OCR cut, from 5.5% to 5.25%, was the the first cut since March 2020. 

The Reserve Bank’s new forecast rate track suggested the OCR would fall to at least 5% by the end of the year and to at least 4.5% by June next year.