ASB has lowered its fixed mortgage rates, bringing them in line with other major banks.
The bank today announced cuts of between 10 and 20 basis points (bps) to its six-month to three-year lending terms.
ASB鈥檚 one-year fixed-term home loan rate will drop 20bps from 5.99% to 5.79%.
Its six-month and two-year fixed rates also fall 20bps, to 6.19% and 5.49% respectively.
The bank鈥檚 three-year fixed home loan rate is being cut by 10bps to 5.59%.
Last week, ASB cut its variable home loan rate by 50bps to 7.39% and its orbit rate to 7.49%, following the Reserve Bank鈥檚 decision to cut the Official Cash Rate (OCR) by 50bps to 4.25%.
ASB also reduced some of its term deposit rates by between 10 and 20bps.
While falling interest rates this year have been good news for some borrowers, they haven鈥檛 dropped as much as many optimists would have hoped.
Reserve Bank governor Adrian Orr tempered expectations around mortgage cuts last week, noting 鈥渙ther global influences going on鈥 as a reason for interest rates not necessarily falling in line with the OCR.
Other factors, such as banks already pricing in OCR cuts, should calm overly enthused borrowers.
In reality, OCR changes have never translated one-for-one to mortgage rate changes across all terms, with the OCR more directly influencing floating rates and those for loans fixed at shorter terms.
Many of the major banks were quick to pass on the full 50bps to customers on floating rates last Wednesday.
The OCR also isn鈥檛 the only thing that influences the interest rates that consumers and businesses pay.
Geopolitical factors can put upward pressure on the interest rates banks pay to borrow money from international money markets to then on-lend to Kiwis.
Lately, this pressure has revolved around Donald Trump following his win in the US presidential election in November.
Investors believe the tax cuts the President-elect has promised to deliver in the US will result in the country鈥檚 books sinking further into the red.
Take your Radio, Podcasts and Music with you
Get the iHeart App
Get more of the radio, music and podcasts you love with the FREE iHeartRadio app. Scan the QR code to download now.
Download from the app stores
Stream unlimited music, thousands of radio stations and podcasts all in one app. iHeartRadio is easy to use and all FREE