ASB is dropping interest rates across personal, business and rural lending following today’s decision by the RBNZ to decrease the Official Cash Rate (OCR) by 0.50%. The move comes hours after ASB lowered its fixed mortgage rates across several popular terms.
ASB’s variable home loan rate will fall by 50 basis points from 8.39% to 7.89%, while the Orbit rate drops from 8.49% to 7.99%. ASB’s Business and Rural Floating Base Rate is moving from 6.69% to 6.19%.
ASB’s Executive General Manager Personal Banking Adam Boyd says “We’re pleased to be announcing substantial cuts to our floating home loans, as well as our business and rural rates, in response to the OCR decrease. The various rate reductions we’ve announced today will impact more than 120,000 customers and we hope this will take some pressure off our customers. We do expect this downward OCR trend to continue into 2025 which will provide further relief.”
The OCR decrease is also being passed on to some of ASB’s savings rates. Savings On Call will move from 2.65% to 2.15% while ASB’s youth account, Headstart will shift from 4.75% to 4.15%.
|
Home Loan* |
Current Rates |
New Rates |
Rate Change |
|
Housing Variable |
8.39% |
7.89% |
– 0.50% |
|
Orbit |
8.49% |
7.99% |
– 0.50% |
|
Back My Build |
5.94% |
5.44% |
– 0.50% |
Note – Back My Build applications are no longer open to new customers.
|
Business Loan* |
Current Rates |
New Rates |
Rate Change |
|
Business and Rural Floating Base Rate |
6.69% |
6.19% |
– 0.50% |
|
Business Base Rate |
13.52% |
13.02% |
– 0.50% |
|
Rural Base Rate |
10.76% |
10.26% |
– 0.50% |
|
Corporate Indicator Rate |
7.93% |
7.43% |
– 0.50% |
|
Special Purpose Rate |
6.50% |
6.00% |
-0.50% |
* These changes are effective from 17 October 2024 for both new and existing customers.
|
Savings |
Band |
Current Rates |
New Rates |
Rate Change |
|
Savings On Call & ASB Cash Fund |
All Balances |
2.65% |
2.15% |
– 0.50% |
|
Savings Plus |
No Bonus |
2.30% |
1.70% |
– 0.60% |
|
Partial Bonus |
2.40% |
1.80% |
– 0.60% |
|
|
|
Full Bonus |
4.75% |
4.15% |
– 0.60% |
|
Headstart |
All Balances |
4.75% |
4.15% |
– 0.60% |
*These changes are effective from 24 October 2024 for new and existing customers
ASB has practical information for customers on the current interest rate environment available on its website (ref. https://www.asb.co.nz/home-loans-mortgages/preparing-for-rising-interest-rates.html ) as well support to help customers take control of their financial wellbeing and achieve their goals at its Financial Wellbeing Hub: https://www.asb.co.nz/banking-with-asb/financial-wellbeing.html
