The ASB Bank has been fast out of the blocks in the wake of the cut to the Official Cash Rate, cutting its floating home loan rate to 7.95 percent from 8.70 percent.
Two banks have already responded to the Reserve Bank’s 150 basis point OCR cut today. Kiwibank has reduced all its home loan rates, while ASB Bank has cut 75 points off its floating rate, bringing it down to 7.95% Kiwibank’s one-year fixed rate is 6.49% and its variable rate is down to 7.45%.
MORE than 40,000 unlucky people have been caught out in a fixed mortgage rate trap, having taken out their loan at the highest fixed interest rates in a decade, denied any saving from the recent cuts and confronting costly break fees if they decide to refinance.