Update: rate wars and mortgage holidays

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As predicted, ASB has finally lowered their interest rates and joined the rate war.

With most banks lowering their one-year fixed mortgage rate to 3.09%, ASB has placed themselves levelled with ANZ who were holding the lowest (out of the big five) and announced their one-year interest rate at 3.05%.

ANZ and ASB are now the lowest amongst the top five banks in New Zealand.

Mortgage holidays

In other news, given the crisis which we're all in, there will be an announcement made within the next 48 hours with more details on the possibility of going on a three-month mortgage holiday. This option will be available for those whose income is affected by the lockdown and COVID-19 situation.

It has always been fairly difficult for the public to go onto a mortgage holiday, but given the circumstances, banks are showing leniency and now looking to refine a way that makes it much simpler.

How does this impact me?