ASB has reduced its home loan special rate for three of its seven fixed terms, giving it the second lowest rate offering on the market following HSBC Premier.
The bank has reduced its one year and 18 month ‘special’ fixed rates by -10 basis points to 4.29% and 4.39% respectively, and it has also reduced its two year ‘special’ fixed rate by -6 basis points, bringing it down to 4.49%.
HSBC Premier’s ‘special’ 18 month fixed rate of 3.85% remains unrivalled, and the bank currently offers the lowest rates across all three of the most popular fixed term periods.
Kiwibank remains ASB and HSBC Premier’s biggest challenger, with its 2 year fixed rate of 4.39%. Rival lenders with rates over the 5% mark will likely be paying close attention and looking to capitalise on market share, especially in light of recent REINZ data which revealed a relatively stable property sales volume.
Non-bank lenders have also made gains in the market and utilised their freedom from LVR restrictions to offer loans with deposits as low as 10%, though interest rates and processing fees vary widely from lender to lender.
HSBC announces 'unrivalled' new home loan rate
Low-interest rates and easing LVRs fuel residential demand