ASB adn Westpac Join Rate Cut Trend, Lowering Fixed Mortgage Rates to 4.49%
homeowners and prospective buyers are seeing increased relief as ASB and Westpac have both announced cuts to their fixed mortgage rates, with one-year rates now falling to 4.49%. this move follows similar reductions by ANZ and BNZ earlier this week, signaling a growing trend among major lenders to lower borrowing costs.
The cuts come as the Reserve Bank of New Zealand (RBNZ) is expected to further ease monetary policy in the coming months. With the Official Cash Rate (OCR) currently at 3%, down from 5.25% in August of last year, economists predict at least two more rate reductions by March. These lower rates aim to stimulate a New Zealand economy that the RBNZ recently acknowledged has stalled in its recovery.
ASB reduced its one-year fixed rate by 26 basis points,with its six-month rate now at 4.95% and its two-year rate at 4.65%. According to ASB Executive General manager Adam Boyd, the cuts are “welcome news to the thousands of households looking to refix their mortgages or begin their journey towards home ownership this year.” Boyd added that their 18-month and 1-year terms now sit below 4.50%, offering “certainty in an economic landscape that continues to evolve.”
Westpac mirrored the 26 basis point drop on its one-year fixed rate. Thay also lowered their six-month rate to 4.99% and their two-year rate to 4.65%. ANZ previously announced a one-year fixed rate of 4.49% on Wednesday, while BNZ matched that rate on Tuesday. ANZ’s current rates also include 4.89% for a six-month fixed term and 4.65% for a two-year fixed term. BNZ advertises rates of 4.99% for six months, 4.49% for one year, and 4.75% for two years.
The RBNZ will announce its next OCR decision on October 8.
