ASB follows rivals with mortgage rate cuts in a home loan market walking on eggshells, one that hasn't fired any shots in a season dominated by low real estate sales transaction levels

After a quiet six weeks of rate changes in the mortgage market, ASB has kicked off this week with some reductions.

However, they are not significantly notable because they basically just represent an adjustment of ASB's carded rates down towards where most of the market has already settled.

ASB has trimmed its card by between 10 basis points and 20 basis points across the board, except for its five-year fixed rate.

But that still leaves them 15 bps higher than Kiwibank for the one year fixed term, 19 bps higher than BNZ for the 18 month fixed term, and 14 bps higher than ANZ for the benchmark two-year fixed term. It is only for four and five year fixed rates where they have any carded advantage over their main rivals.

The mortgage market is basically a zero-sum refi market at present, with the real estate transfer market in an unusual summer doldrums period.

Challenger banks are setting the pace with lower home loan offers, especially the Bank of China who have all their carded rates for fixed terms one to three years at 6% or below. These are advantages of at least 50 bps, or more.

In wholesale markets, the pressure is lower. Since the start of March, swap rates have fallen about -30 bps. But wholesale swap rates were actually lower than they are at present at the beginning or February, so the recent period has been characterised by meandering volatility. From the start of 2023, swap rates are generally -30 bps lower.

When home loan demand is low, the influence of wholesale swap market trends is muted.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is also below. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 20, 2023	%	%	%	%	%	%	%
ANZ	6.60	6.54	6.49	6.45	6.59	7.19	7.09
	6.64 -0.20	6.64 -0.20	6.64 -0.15	6.59 -0.20	6.59 -0.10	6.49 -0.10	6.49
	6.54	6.54	6.45	6.49	6.59	6.59	6.59
	6.50	6.49		6.49	6.79	6.79	6.79
	6.59	6.59	6.59	6.54	6.59	6.59	6.49
Bank of China		6.00	5.95	5.95	5.90	6.35	6.35
China Construction Bank	6.60	6.54	6.49	6.45	6.40	6.40	6.40
Co-operative Bank [*FHB special]	6.49	6.39*	6.49	6.49	6.59	6.59	6.59
Heartland Bank		6.14	6.15	5.99	5.95
HSBC	6.44	6.39	6.44	6.49	6.59	6.65	6.69
ICBC	6.39	6.25	6.29	6.29	6.39	6.39	6.35
	6.59	6.59	6.64	6.59	6.59	6.65	6.69
	6.29	6.29	6.49	6.49	6.59	6.59	6.49