ASB hits the spring market with a 3 year fixed mortgage rate that trumps all rivals by at least 30 bps

ASB (as well as BankDirect and Sovereign) has adjusted the point of its attack on the mortgage market.

The traditional pre-holiday home selling season has started.

Rather than fighting at the 1 year term at the [almost] market leading rate of 4.35%, it has pivoted to a sharp three year offer.

It has tweaked its one year rate up +4 bps to 4.39%.

But its new focus takes advantage of the flatter wholesale rate curve.

Its three year fixed rate is now 4.49%, and it is market leading for this term.

No other bank comes close for that term.

This change involves a -30 bps reduction.

This new competitive front is somewhat unusual; a three year term is not often where fighting rates are pitched.

But as carded mortgage rates have stopped falling recently - in fact, underlying wholesale rates have also stopped falling - it could be a good place to offer a distinctive advantage.

The flatness of the industry's rate offers will test everyone. This distinctive 3 year offer is ASB's response.

Borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater.

Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.

See all banks advertised, or carded, residential mortgage rates here.

These new fixed mortgage rates now compare across all banks as follows:

below 80% LVR	6 mths	1 yr	18mth	2 yrs	3 yrs	5 yrs
		%	%	%	%	%
	5.15	4.35	4.95	4.49	5.10	5.35
	4.85	4.39	4.49	4.49	4.49	5.09
	4.99	4.35		4.39	5.19	5.35
	5.19	4.49		4.49	4.85	5.35
	5.15	4.35	4.95	4.49	5.10	5.35
	4.99	4.35	4.49	4.49	4.85	4.99
	5.15	4.25		4.49	4.99	4.99
	4.99	4.35	4.69	4.49	4.79	5.29
	5.29	4.35	4.69	4.39	4.79	5.35