ASB lightens the load for New Zealand families

In the wake of the Reserve Bank of New Zealand’s decision to lower the Official Cash Rate to 8%, ASB has announced they would drop its two year fixed home lending rate by 0.25% to 8.95%. The two year fixed rate is the most favoured term for New Zealand homeowners.

“This is the first time in five years the OCR rate has decreased. Wholesale rates immediately fell as a result of the announcement and with the higher petrol and food prices New Zealand families are having to pay at the moment, ASB is keen to pass on this lower cost of funding to our customers,” says Peter Hall, Head of Business Ventures, ASB.

ASB is currently reviewing its other mortgage rates as a result of the change in the OCR. While floating rates are also under review, ASB is the only major bank to have held this interest rate at 10.75% over the past four months.