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The reductions follow falls in wholesale rates.
Photo: RNZ / Marika Khabazi
ASB and Kiwibank reduced fixed mortgage rates on Monday for the second time in weeks.
ASB has cut rates for the third time in two weeks, slightly dropping six-month, one-year and two-year rates.
Kiwibank also cut its rates for the second time in two weeks.
ASB said more than three-quarters of its fixed home lending was for 24 months or less.
Photo: RNZ / Marika Khabazi
The reductions follow falls in wholesale rates on expectations that central banks are getting closer to cutting their benchmark rates.
For Kiwibank home borrowers with at least 20 percent equity, the bank’s two-year term is 6.79 percent, and 6.89 percent for those with less equity.
The one-year rate is 7.25 percent (7.35 percent for lower equity) and the six-month term was 7.35 percent (7.39 percent).
ASB’s six-month term has dropped 10 basis points to 7.29 percent, the one-year term has reduced by 5 basis points to 7.24 percent and the two-year rate has also dropped to 6.79 percent.
The bank said more than three-quarters of its fixed home lending customers were opting for terms of 24 months or less.
The bank dropped its 12-month term deposit rate to 6 percent, and four term deposit rates at longer terms by between 5 and 20 basis points.
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