ASB flattens out home loan prices
The move to its rates have seen the yield curve flatten significantly and reducing the gap between shorter and longer term rates. Indeed there is only a 90 basis point spread now between its one year fixed rate and its five year rate.
Rates whihc have increased are six-month, one-year, 18 month and two-years. These have increased between 21 and 35 basis points. Rates of more than two years have fallen 20 points for three year terms, 39 points for four years and 41 points for five years.
The above graph compares ASB to ANZ. We have chosen ANZ as it is the biggest lender in New Zealand and has consistent pricing across the curve, bar the three year rate.
ASB's rates also apply to its fully-owned bank subsidiary Bank Direct and insurer Sovereign.
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