ASB trims some home loan rates but these aren't significant or competitive. They also cut most key term deposit rates. The net effect is a margin gain

Number two home loan bank ASB has trimmed a couple of fixed mortgage rates this morning. They are now matching their rivals in the popular six month term at 5.79%.

And they have cut their four and five year fixed rates for these terms, which aren't popular at all. But they haven't cut them to rival Westpac levels which are now -20 to -30 bps lower than ASB.

None of these ASB changes approach the very competitive fixed rate card currently offered by the Bank of China.

While the ASB home loan rate changes may seem minor, even insignificant, they have become the 'basis' of their term deposit rate changes which hit the heart of where savers focus.

ASB's new three and six month term deposit rates are now the lowest of any bank. Their three month rate is now 3.70% (down -20 bps) and their six month rate now 4.30% (also down -20 bps). They also cut one, five and nine month carded TD rates.

The net effect is likely to be a margin gain for ASB.

The reader-reported mortgage rates are showing less of an advantage now, but please record them if you have them. We need you to record them in the comment section below, which helps us stay on top of this fast-changing corner of the home loan rates market.

And still 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.

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.

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, 2025	%	%	%	%	%	%	%
ANZ	5.89	5.29	5.19	4.99	5.29	5.99	5.99
current reader-reported rates
	5.79 -0.10	5.25	5.19	4.99	5.35	5.59 -0.20	5.69 -0.10
current reader-reported rates
	5.79	5.29	5.19	4.99	5.29	5.69	5.79
current reader-reported rates
	5.79	5.19		5.19	5.59	5.79	5.89
current reader-reported rates
	5.89	5.29	5.19	4.99	5.39	5.39	5.39
current reader-reported rates	5.79	5.19	5.19	4.99	5.29	5.39	5.39
Bank of China	5.65	4.99	4.99	4.99	5.15	5.35	5.35
China Construction Bank	5.89	5.29	5.19	4.99	5.29	5.99	5.99
Co-operative Bank (*=FHB only)	5.69	5.09*	5.29	5.19	5.49	5.79	5.89
Heartland Bank (no new business)		5.89
ICBC	5.89	5.05	5.19	4.99	5.39	5.49	5.49
	5.95	5.39	5.25	5.29	5.35	5.69	5.69
	5.89	5.19	5.49	4.99	5.39	5.79	5.89