ASB provides further relief to homeowners

Thursday, 11 September 2008ASB has dropped its floating home lending interest rate by 0.50%, the same cut made by the Governor of the Reserve Bank to the OCR. ASB’s floating rate will now be 10.25%.
The Bank has also dropped its fixed home lending rates, the 12 month rate now sitting at 8.95% and the 2 year rate at 8.90%. Other home lending interest rate changes are:

6 months 9.50%
3 years 8.90%
4 and 5 years 8.95%

These new home lending rates take place immediately for new borrowers, and the floating rate change is effective as from 6 October 2008 for existing borrowers.

“We are waiting for wholesale market rates to settle, and our home lending rates will continue to be under review,” says Hugh Burrett, Managing Director, ASB.

“ASB sees today’s move by the Governor of the Reserve Bank as a very positive initiative for the housing market and the economy in general. This bold action is just what is needed at this time.”