Soon after its 18 month mortgage rate cut last week, ASB trims its one and two year home loan rates. And tweaks up its 6 month term deposit rate slightly

For the second time in a week, ASB has reduced some mortgage rates. 

They have dropped their one-year home loan rate by -10 basis points to 7.29%, and its two-year lending rate has been trimmed -4 bps to 6.85%. 

ASB has also increased its 6-month term deposit rate by five basis points to 6.05%.

These changes follow their 18-month mortgage cut last Tuesday which dropped -26 bps to 6.89%.

As a result of these three home loan rate cuts, ASB now shares the same one year rate with BNZ and Westpac. 

It still has the lowest 18 month rate of any major bank.

And its two year rate now matched BNZ as the lowest of the majors.

ASB's latest changes have come after the RBNZ MPS, so there is a bit more clarity on the policy background to interest rate markets. Their change last week was braver given it was before the RBNZ's statements, but events have justified the shifts.

It has to be said however, that ASB's 'bravery' isn't much really - they are only shifting to where others are already pitched.

And their raising of +5 bps to the six month term deposit rate also only matches a key rival (BNZ).

Wholesale swap rates ticked lower after the dovish RBNZ moves.

Obviously you should negotiate and shop around. Most banks will discount their carded home loan rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's own product.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is 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. They will become important in a falling market however.

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

(Table updated with later ANZ changes. See here.)

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 4, 2024	%	%	%	%	%	%	%
ANZ	7.35	7.24 -0.15	6.89 -0.26	6.79 -0.10	6.65 -0.10	7.34	7.34
	7.39	7.29 -0.10	6.89 -0.26	6.85 -0.04	6.65	6.55	6.55
	7.39	7.29	6.99	6.85	6.65	6.55	6.55
	7.39	7.35		6.89	6.75	6.69	6.59
	7.39	7.29	6.95	6.89	6.65	6.59	6.39
Bank of China		7.09	6.99	6.89	6.79	6.69	6.59
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.39	7.29 -0.06	7.15	6.89	6.75	6.75	6.75
Heartland Bank		6.69	6.59	6.45	6.19
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.45	7.45	7.25	6.95	6.79	6.69	6.59
	7.39	7.39	7.19	6.75	6.75	6.79	6.79