ASB becomes the first bank to offer all fixed rates below 4%, and now offers the lowest two year fixed rate 'special' of any major bank. These reductions come after TD rate cuts

ASB is the next bank to follow Westpac by cutting its three, four and five year fixed rate home loan 'specials' below 4%.

ASB joins Westpac and BNZ on identical low rates for these terms.

But ASB has made two other changes today (Thursday), raising its one year fixed rate 'special' by +6 basis points to 3.45%.

And ASB has lowered its two year fixed rate 'special' by -16 bps to 3.39%.

In fact this two year 'special' is now uniquely low among all main banks for this term.

After these changes, 3.39% is the lowest rate offer ...

- for a one year term, at Westpac

- for an 18 month term, at BNZ

- for a two year term, at ASB.

Among all main banks, only ASB has its whole rate card for fixed home loan 'specials' below 4% . All the other banks have some options above 4%.

ASB also cut term deposit rates this week as have BNZ and HSBC.

Among the challenger banks, TSB is still offering its Price Match Promise, promising to match any rate of any major Aussie bank (so long as you ask them for it).

TSB also still has its up to $4000 cash incentive program operating. You will need to check the terms and conditions however - it may not necessarily be offered with the Price Match Promise although their promotion suggests it does.

The lowest carded rates are still only available from three of the Chinese banks operating in New Zealand - ICBC, China Construction Bank, and HSBC. Each has an offer between 3.15% and 3.20%.

Low mortgage rates are putting pressure on banks to trim their term deposit offers to savers. Customer deposits supply the majority of bank funding. But banks are constrained on both the TD and mortgage front by their core funding obligations to their regulator, the Reserve Bank.

Also falling are wholesale interest rates. These funds are the source of less than a third of bank funding, but the very low rates here for banks that use wholesale funding (the main banks mostly) are driving down what they can offer.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 12, 2020	%	%	%	%	%	%	%
ANZ	3.65	3.45	3.49	3.65	3.99	4.75	4.85
	3.89	3.45	3.75	3.39	3.69	3.79	3.89
	4.79	3.49	3.39	3.55	3.69	3.79	3.89
	4.29	3.45		3.55	3.89	3.99	4.09
	4.79	3.39	4.25	3.55	3.69	3.79	3.89
Bank of China	5.15	5.25		5.35	5.50	5.70	5.99
Co-operative Bank	3.49	3.49	3.59	3.59	3.89	3.99	4.09
China Construction Bank	4.70	3.15		3.15	3.19	3.30	3.45
ICBC	4.29	3.18	3.18	3.18	3.20	3.99	3.99
HSBC	4.19	3.54	3.54	3.20	3.69	3.79	3.89
	4.29	3.39	3.69	3.55	3.89	4.19	4.29
	3.89	3.39	3.55	3.55	3.89	4.45	4.55
Price Match Promise			3.39	3.39	3.69	3.79	3.89

In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.