ASB lifts fixed mortgage rates as wholesale pressures bite

ASB has increased fixed home loan rates for one to five-year terms, adding to the recent round of mortgage rate hikes from New Zealand’s major banks. The moves put more pressure on borrowers approaching refix.

The bank’s one-year special moves from 4.59% to 4.65%, the 18‑month rate from 4.85% to 4.95%, and the two‑year from 5.09% to 5.25%. Three‑year fixed rises to 5.49%, four‑year to 5.69%, and five‑year to 5.89%, with changes ranging from 6 to 20 basis points. Six‑month fixed remains unchanged at 4.49%.

“Global financial markets have been volatile, and ongoing geopolitical tensions have driven sustained increases in wholesale interest rates,” ASB executive general manager personal banking Adam Boyd (pictured) said. “These rates underpin lending and deposit pricing in New Zealand and reflect broader trends across international markets as economies navigate the current outlook.”

Term deposits rise as banks compete for funding

On the funding side, ASB has lifted selected term deposit rates by 5 to 20 basis points for 12‑, 18‑, 24‑, and 48‑month terms. The 12‑month TD rate nudges up from 3.7% to 3.75%, 18‑month moves from 3.8% to 4%, 24‑month from 4.05% to 4.15%, and 48‑month from 4.60% to 4.7%.

Refixing squeeze looms, lifting demand for broker guidance

For first‑home buyers and heavily geared investors, slightly higher fixed rates reinforce the importance of tight expense management and realistic assumptions around future mortgage rates. Borrowers nearing the end of ultra‑low fixed terms may still face a noticeable step‑up in repayments, even after these relatively modest increases.

Boyd urged customers not to go it alone, saying “we encourage any homeowners feeling uncertain about their position to get in touch. There is real value in talking through your options and ensuring your lending structure is working for your circumstances.”

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