ASB cuts longer-term mortgage rates

ASB has cut three of its longer-term home loan rates, reducing the gap between short- and long-term loans.

Its three-year fixed rate has been cut 15 basis points from 5.90% to 5.75%.

The four-year fixed rate has seen a similar reduction, from 6.10% to 5.95%.

And its five-year fixed rate has been cut 25 basis points from 6.50% to 6.25%.

At the same time, ASB has raised its two-year fixed rate by 20 basis points to 5.45%

Floating, one-year, six-month and 18-month rates remain unchanged.

ASB general manager retail products Shaun Drylie says the changes give customers more certainty about home loan repayments over the longer term.

Kiwibank continues to have the lowest longer-term rates, offering 5.99% for a five-year term. BNZ has the next lowest five-year rate at 6.50%.

Bank economists have recommended home owners look at shifting to fixed rates, predicting the Reserve Bank's next move for the Official Cash Rate – albeit later in the year – will be up.

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