ASB cuts fixed rate

RICHARD MEADOWS

Last updated 15:01 02/07/2012

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ASB has cut its five year fixed mortgage rate to the lowest it has been in three years, offering hope that the mortgage war may not be over.

The bank dropped its rate by more than half a percentage point to 5.99 per cent, a "special" deal that it said would be available for a limited time.

To qualify, homeowners would need to own at least 20 per cent of the equity in their homes. According to ASB's latest disclosure statement, 83 per cent of existing customers would fit that criterion.

However, sister banks/building societies SBS and HBS have offered the same rate with the same equity condition to customers who do their full banking with them since May.

The last round of home loan cuts, which ended weeks ago, was originally sparked by a special deal introduced by Kiwibank.

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