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ASB Adjusts Interest Rates As The Economic Outlook Improves

ASB has today announced increases to its fixed term mortgage and term deposit rates.

Craig Sims ASB’s executive general manager of Retail Banking says, “The New Zealand economy is proving robust, and the economic outlook has improved. While interest rates are now increasing, they remain at historically low levels.

“We’re mindful that some first home buyers in particular have only ever experienced the current low-rate environment. When we assess a home loan application we use a ‘test rate’ that is substantially higher than current mortgage rates to give customers the confidence they can continue to make payments if rates increase.

“We encourage home lending customers to talk to us about their options, which could include spreading mortgage amounts over different terms to give certainty over time or making extra payments while rates are very low.

“ASB is focused on the long-term financial wellbeing of our customers whether they’re borrowers or savers. In line with this the changes to our Term Deposit rates today will see our most popular 6-month term move to 1.00%.

“We’re committed to offering innovative home lending products such as our 1.79% variable Back My Build loan for customers building a new home, and helping customers budget with the comprehensive calculators and tools available on our website.

“Whatever the market conditions, our focus is squarely on offering customers market-leading home lending products and leading customer experiences,” said Mr Sims.

ENDS

Home loanPrevious rate (p.a)ChangeNew rate (p.a)
Housing Variable4.45%0.00%4.45%
Orbit Variable4.55%0.00%4.55%
Back My Build Variable1.79%0.00%1.79%
6 months2.99%0.30%3.29%
1 year2.19%0.36%2.55%
18 months2.49%0.30%2.79%
2 years2.59%0.36%2.95%
3 years2.99%0.30%3.29%
4 years3.39%0.30%3.69%
5 years3.69%0.30%3.99%

Term Deposits &

Term Funds

Previous rate (p.a)

($5000+)

Change New rate (p.a)
($5000+)
30 days0.15%0.00%0.15%
60 days0.25%0.00%0.25%
90 days0.35%0.00%0.35%
4 months0.45%0.00%0.45%
5 months0.55%0.00%0.55%
6 months0.80%0.20%1.00%
9 months0.90%0.00%0.90%
1 year1.20%0.00%1.20%
18 months1.25%0.00%1.25%
2 years1.30%0.10%1.40%
3 years1.40%0.30%1.70%
4 years1.60%0.25%1.85%
5 years1.75%0.25%2.00%

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