4 February 2004
ASB Bank Increases Variable Home Loan Interest Rate
Statement made by Barbara Chapman, Head of Retail Banking and Marketing, ASB Bank Limited
ASB Bank today announces an increase in its variable home lending interest rate, from 7.25% p.a. to 7.50% p.a.
This increase takes effect immediately for new
home loans, and on or after
1 March 2004 for existing variable home loans.
This increase is due to rises in the key 90 day bank bill rate following the 25 point rise in the OCR announced by the Reserve Bank last week.
As a consequence of increases in wholesale interest rates, ASB Bank’s variable home loan interest rate has increased from 7.05% p.a. to 7.50% p.a. (45 basis points) since early August 2003. These increases have also been passed on to depositors with the Bank’s key 6 month term investment rate for deposits of $10,000 or more increasing by 75 basis points over the same period.
On a table mortgage of $100,000 over a 20 year term, this increase in variable loan interest rate equates to an increase of $15.21 per month or $3.51 per week.
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