ASB drops some mortgage rates

ASB says it has cut several lending rates.

ASB says it has cut rates on some mortgage terms.

The bank today said its 6-month term dropped 10 basis points to 5.89%, the 1-year rate dropped from 5.54 to 5.49% and the 18-month term was dropping 15 basis points to 5.19%.

Adam Boyd, ASB executive general manager, said competition on interest rates was fierce.

He said the rate changes should be welcome news for home loan customers and people looking to refix or buy.

Boyd said the bank had detected growing interest in the 18-month term.

Some term deposit rates at ASB have also fallen today.

ANZ, the country’s biggest bank, last month trimmed some mortgage rates to match more attractive offers from some of its competitors.

Infometrics chief forecaster Gareth Kiernan recently told the Herald he expected the Official Cash Rate (OCR) to reach 3.25% by mid-year.

The next announcement on the OCR, currently on 4.25%, will be made on February 19.