“We’ve been consistent in our ambition to support New Zealanders on their home-ownership journey with lower mortgage rates,” said Adam Boyd, ASB’s executive general manager personal banking.
“We’re seeing a growing number of customers splitting their mortgages across different terms to hedge their bets in the current climate, and we’re pleased to be able to offer a range of lending options to suit homeowners’ and homebuyers’ diverse needs.”
ASB now has the equal lowest interest rate for a six-month fixed term among the big banks along with BNZ.
Data released today by CoreLogic NZ, which looked at Reserve Bank figures, showed 90% of borrowers chose a floating or short-term fixed rate (six to 12 months) in January.
However, CoreLogic NZ chief property economist Kelvin Davidson said “rate wars” could see a shift in borrowing behaviour to longer-term rates.
“The fixation with short fixes might be about to come to an end.
“Wite rate wars recently emerging among lenders offering lower 2-3 year fixed rates, we could start to see a shift back towards them pretty shortly.”
The Reserve Bank (RBNZ) will make its next Official Cash Rate (OCR) decision on April 9.
The OCR is currently 3.75% with the RBNZ delivering 175bps in basis cuts since July last year.
The RBNZ’s latest OCR track implies a 25bps cut in both April and May to 3.25%.
Stats NZ will release Gross Domestic Product (GDP) figures for the December quarter at 10.45am today.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.