More banks cut longer-term home loan rates

ASB has become the latest main bank to cut its longer-term fixed rates.

It has reduced its three- to five-year fixed-term home loans by 20 basis points or 30 basis points, and increased the rates on its six-month and 18-month terms by 20 and 14 basis points respectively.

The three-year rate drops from 5.49 percent to 5.29 percent.

ASB has also reduced term deposit rates by up to 25 basis points across two-year to five-year terms.

"Wholesale interest rates continue to be somewhat volatile but longer-term rates have come down recently. These rates play a key role in setting lending and deposit pricing domestically, and mirror broader trends internationally as markets navigate the current landscape," said ASB's executive general manager personal banking Adam Boyd.

The bank's one-year rate remains at 4.65 percent and the two-year rate at 5.25 percent.

Kiwibank earlier in the week increased its six-month rate but cut longer terms.

It reduced its two-year rate from 5.29 percent to 5.19 percent, and its three year rate from 5.55 percent to 5.39 percent. The four-year rate dropped from 5.89 percent to 5.59 percent and the five-year from 5.99 percent to 5.69 percent.

It also trimmed deposit rates by 10 basis points.

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