Rates tumble in home loan war

ASB is also heavily undercutting all the big banks on the one-year fixed term, offering 6.95 per cent, which banking sources said was likely to be at paper-thin profit margins.

The ASB's one-year fixed rate is well below any other big bank, and a whopping discount to the 7.75 per cent for one-year fixed being charged by ANZ Bank and Westpac.

ASB trimmed its two-year fixed term rate to 6.95 per cent late last week, down from 7.75 per cent a few weeks ago, but BNZ shot back yesterday dropping its two-year rate to 6.9 per cent.

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