ASB announces increases to variable home lending and savings account rates

ASB has today announced increases to both its variable home lending and most savings account rates. Changes have also been made to the six and 12 month fixed lending rates.

Catherine McGrath, Chief Executive Customers, Markets and Products says the decision to increase the variable lending rate by 0.25 percent has been made following the recent increase in the Official Cash Rate, and also takes into consideration wider market factors.

“This is the first increase in the OCR since July 2007, and further increases are anticipated over the coming months,” she says. “The increases we are making today take into account both our offshore funding costs and the continuing pressure on retail deposit rates in New Zealand. With overall funding costs having increased, we have made the decision to lift our variable home lending and savings account rates by 0.25 percent. Our variable rate is now at 6.00 percent.”

“ASB was the market leader in bringing the variable housing rate down to 5.75 percent in September 2009. This home lending rate has remained unchanged since then, providing mortgage holders with real value over the past nine months.”

“The market is now entering a new cycle, and we need to ensure our products are priced appropriately based on our underlying costs. With this in mind, we have also increased a number of our deposit rates today, ensuring our savings customers see the benefit,” adds Ms McGrath.

The variable home lending rate change is effective as from 18 June for new customers and from 5 July for most existing customers. Fixed lending rate changes are effective as from 18 June for all new lending, and deposit rates change on 25 June.

A full table detailing all rate changes is attached.