ASB has reduced its home lending rates for a second time in the past week, matching drops from Westpac and BNZ in February.
The bank said its one-year lending rate has dropped 10 basis points from 7.39 percent to 7.29 percent, and its two-year lending rate has also decreased from 6.89 percent to 6.85 percent. ASB has also increased its 6-month term deposit rate by five basis points to 6.05 percent.
It follows ASB's 18-month mortgage adjustment on 27 February which dropped 26 basis points to 6.89 percent.
Executive general manager of personal banking Adam Boyd said ASB regularly reviewed its rates.
"The reduction to some of our key mortgage terms in part reflects how swap rates have responded to the Reserve Bank's decision to hold the Official Cash Rate at 5.5 percent.
"We know that the rising cost of living is affecting our customers, and alleviating a bit of pressure will be welcome news for homeowners in the current environment."
This followed Westpac reducing its fixed home loan rates of between 10 and 20 basis points on 9 February.
Its special fixed one-year lending rate dropped to 7.29 percent while its special fixed 18 month rate dropped to 6.95 percent.
Westpac NZ general manager of product, sustainability and marketing Sarah Hearn said customers may still be concerned despite its reductions.
"While we are reducing our rates, we acknowledge that customers may be re-fixing their loans from the historically low rates we have seen over recent years and may still be concerned about their increasing costs.
"Our data shows the vast majority of our customers are coping well with higher living costs, but we encourage them to get in touch if they have any concerns."
Westpac NZ also decreased term deposit rates by between 10 and 30 basis points on all terms between 12 months and five years.
Meanwhile, BNZ also dropped its fixed mortgage rates ahead of the Reserve Bank's OCR decision.
Its one-year lending rate now sits at 7.29 percent and its two-year lending rate sits at 6.85 percent.