9 December 2003
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 7.05% p.a. to 7.25% p.a.
This increase takes effect immediately for new home loans, and on or after 5 January 2004 for existing variable home loans.
On a table mortgage of $100,000 over a 20 year term, this equates to an increase of $12.08 per month.
While the RBNZ chose not to increase the OCR last week, this increase in ASB Bank’s variable home loan interest rate reflects the steady increase in wholesale interest rates since early August.
Increasing wholesale interest rates over the last 4 months have brought more positive news for depositors. During the period from 2nd August to today, Term Deposit interest rates in the key 6 month/over $10,000 term have increased by 0.55%, significantly greater than the 0.20% increase in the home lending variable rate announced today.
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