ASB has launched a new "limited time" two-year fixed home loan rate of 5.70 per cent.

The special rate, which came into effect at 5pm on Friday, is 25 basis points lower than the bank's standard rate.

"It comes at a time when we're noticing more customers seeking to split their home loan across a variety of terms, meaning they can take advantage of great short-term rates mixed with some long-term certainty," said spokesman Shaun Drylie.

ASB also has a special six-month rate of 4.75 per cent running at the moment.

Advertisement

To qualify for the two-year and six-month mortgage rates, buyers must have at least a 20 per cent deposit, (a Loan to Valuation Ratio of less than or equal to 80 per cent), an ASB credit card, and an active transactional account.

Among the major banks - ASB, Westpac, ANZ and BNZ - the median two-year rate is 5.99 per cent.

New mortgage lending restrictions are about to kick in at the start of October. The changes mean only 10 per cent of the value of banks' new lending can be on loan-to-value ratios (LVRs) of more than 80 per cent.

Data out last week showed young people were making mortgage inquiries at a record rate before the low-equity home lending restrictions come into force.

Inquiries from prospective "generation Y" home buyers increased by a 51.25 per cent in August compared with August last year, according to Veda.