ASB has cut its advertised two-year home loan rate for borrowers with at least 20% equity.
The bank says it'll offer an interest rate of 5.59% per annum for two years for a "limited time."
The offer, available from 5pm on Friday (November 8), is for customers who either have, or get, an ASB credit card and an active transactional account, and who have at least 20% equity (a loan-to-value ratio of less than or equal to 80%).
The new rate is 11 basis points lower than the bank's previous two-year rate for customers with at least 20% equity, and is 36 basis points below the bank's standard two-year rate of 5.95%.
Borrowers without at least 20% equity also face low equity margins.
“As longer term funding costs increase we want to provide our customers with a great rate and the security of knowing their repayments will be protected over the next two years,” said Shaun Drylie, ASB's general manager for retail products and strategy.
Drylie said those borrowing more than $100,000 may also get a new Sony home theatre system and up to $1,000 in cash.
The new ASB rate is among the lowest advertised two-year rates from banks.
The Co-operative Bank also has a 5.59% rate, and SBS Bank a 5.45% rate for borrowers with at least 20% equity.
See all carded, or advertised, bank home loan rates here.
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7 Comments
Yes it does,and Im still mystified why we would see much of a rise in the OCR given how bad it looks in the EU, USA, japan, china. Oh and OZ sure looks great as well, not.
So say next year, mid-year we do start to see small rises. But up 2% by 2016? really? despite how rough it looks elsewhere?
So the dogmatic RB rises a little in 2014, even with NZ un-employment as high as it is.....and the global situation just gets even worse....
Well we've had stupid actions before so Im sure we'll have them again.
regards
This is as a result of successful propaganda campaigns that we currently have "low interest rates". And that we should be really grateful. And that very soon rates will be rising - to punish us all for allowing international buyers to push up Auckland Grammar zone houses.
"Floating" rates are particularly high, masked by the teaser 6 month & 12 month rates which are dipping below floating.
For a "floating" rate of close to 6% (6.24% in Westpac's case) is overcharging in the context of a global economic financial crisis, ZIRP & QE which are emergency measures.
NZ's high interest rates are continually damaging small businesses, retail, consumer spending, and generally suppressing economic activity - the big players are the only ones thriving.
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