ASB and siblings BankDirect and Sovereign have all announced a new one year fixed home loan 'special'.
And ASB have upped the cash-back incentive to $3,000 from $2,000.
Effective Friday night, it now offers 5.95% fixed for one year, subject to terms and conditions, the main one being a minimum 20% deposit or equity.
The new lower rate betters its main rivals. (Update: Monday morning's rate changes by Kiwibank pushes the ASB offer out to be the best in this main group. But smaller banks still trump the ASB rate.)
An establishment fee may apply to the new ASB offer. A minimum 20% deposit or an LVR of 80% or less in the security property is required, and you must have your main transaction account with ASB, with your salary, wages, business income or rents credited, you need to have an ASB credit card.
Early repayment adjustments apply. This special does not apply to loans for business purposes, bridging loans, Homeplus or other ASB discounts or packages.
In addition (and "for a limited time"), ASB are also increasing their Cash Contribution offer for new lending that involves a new security.
Customers borrowing more than $250,000 can receive up to $3,000 (previously $2,000). This increased cash offer applies to loans approved before 18th July 2014 and drawn down by 16th September 2014.
Competition for new home loan business is strong at present with the latest RBNZ data showing a softening market.
The new "lower" one year rate offer from ASB also comes as wholesale rates, especially at the short end (one year) have been rising recently.
Update: Kiwibank has also changed rates on Monday morning.
To stay updated with the latest rates, see all banks' carded, or advertised, home loan rates here.
This is how the updated ASB mortgage rates compare as at 5:00 pm Friday, July 4, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
6.05% | 6.25% | 6.45% | 6.25% | 7.15% |
 |
5.95% | 6.30% | 6.40% | 6.65% | 6.99% |
 |
5.99% | 6.25% | 6.39% | 6.25% | 6.99% |
| Kiwibank | 5.99% | 6.29% | 6.29% | 6.95% | |
 |
6.09% | 6.30% | 6.39% | 6.65% | 6.99% |
| Co-op Bank | 6.00% | 6.00% | 6.00% | 6.25% | 6.89% |
 |
5.85% | 5.99% | 6.25% | 6.99% | |
 |
5.85% | 5.99% | 5.99% | 5.95% | 6.79% |
| TSB Bank | 5.85% | 6.05% | 5.80% | 6.60% | 7.20% |
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