ASB cuts fixed mortgage rates, especially for the six month term, and cuts term deposit rates just as hard. Westpac cuts too

The fixed home loan rate cuts keep on coming, from ASB and Westpac on Thursday morning.

ASB focused its move lower on the currently popular six month rate, taking it down to a market low 6.39%. That trumps the recent move lower by BNZ.

At the same time, ASB raised its four and five year fixed rates, indicating the inverted rate curve may be starting a shift back towards a positive slope. But there is a long way to go on that front.

And ASB made matching cuts for term deposit savers, for six months taking it down to matching ANZ's "very low" rate.

We have cleared the table below of these reader-reported mortgage rates, because they are so fluid. It is a practice we will probably adopt at the start of every week, but with fast changes we have done it early. We need to be reporting current rates from readers. Let us know what you are seeing.

Background international signals have long rates rising.

But markets still expect the next Reserve Bank Official Cash Rate cut will be another full 50 basis points on November 27, at a full Monetary Policy Statement review. But November 27 is still some way off yet so risks of 'being definite' now are high.

The recent September Real Estate Institute of New Zealand data shows the housing market is still in a full-blown funk. We don't see any evidence yet that the spring selling season has started at even an average level. It's below-average. And bank home loan targets are under real pressure when all they can rely on is refinance activity.

Real estate markets rely on momentum as part of their general market pitch.

So competition is pointed at present. And to avoid queering the pitch, a lot of home loan rate activity is going on 'off-card'.

Off-card rate offers are now where much of the action is.

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials.

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. Break fees will be minimal in a rising market. But they become important in a falling market, like now. Don't forget, when you sign up for a fixed rate you are signing a contract. You have been given the right to break it in legislation but the bank has the right to reclaim its costs when you do so. This is NOT evidence of banks making it hard to switch (as some borrowers, and sadly some journalists seem to think).

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. (Be aware that the reader-reported rates are unofficial and may be quite fuzzy themselves.)

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at October 17, 2024	%	%	%	%	%	%	%
ANZ	6.50	5.99	5.79	5.69	5.69	6.19	6.19
current reader-reported rates	6.34	5.59	5.75	5.65	5.65
	6.39 -0.36	5.99 -0.20	5.79 -0.10	5.69	5.69	5.79 +0.10	5.79 +0.10
current reader-reported rates	6.29	5.59	5.59	5.59			5.59
	6.49	5.99	5.89	5.69	5.69	5.59	5.59
current reader-reported rates	6.29	5.59	5.69	5.65	5.59	5.55	5.55
	6.65	5.99		5.69	5.69	5.69	5.69
current reader-reported rates
	6.45 -0.30	5.99 -0.20	5.89	5.65 -0.04	5.65 -0.04	5.59	5.59
current reader-reported rates	6.39	5.79	5.79
Bank of China	6.75	6.25	5.95	5.75	5.75	5.65	5.65
China Construction Bank	6.89	6.45	5.99	5.99	5.89	6.40	6.40
Co-operative Bank	6.75	6.19	5.99	5.75	5.69	5.69	5.69
Heartland Bank		5.99	5.69	5.59	5.69
ICBC	6.69	6.15	5.85	5.69	5.69	5.69	5.69
	6.75	6.35	5.89	5.69	5.69	5.69	5.69
	6.75	5.99	5.99	5.69	5.69	5.69	5.69