11 June 2004
ASB Bank Increases Variable Home Loan Interest Rate
Statement made by Barbara Chapman, Head of Retail Banking and Marketing ASB Bank
ASB Bank today announces an increase in its variable home lending interest rate from 7.75% per annum to 8.00% per annum.
This increase takes effect immediately for new variable rate loans, and on or after 5 July 2004 for existing variable home loans.
On a table mortgage of $100,000 over a 20 year term, this equates to an increase of $15.49 per month.
This increase is in response to yesterday’s increase in the Reserve Bank Official Cash Rate, and ongoing upward pressure on wholesale interest rates.
The Bank will review fixed home lending interest rates next week, and expects these also to rise.