ASB is lowering interest rates for personal, business, and rural loans, while Kiwibank is updating its variable home loan and savings rates in response to the recent changes in the Official Cash Rate (OCR).
“As the easing interest rate cycle continues, we are maintaining support for our customers with lower lending rates,” ASB Executive General Manager for Personal Banking Adam Boyd said.
“Our variable loans are held by nearly 150,000 New Zealanders across personal, business and rural lending and these rates are the lowest they’ve been in more than two years.”
“We carefully consider the impact rate reductions have for all our customers. Today’s response to the OCR will bring relief to households and businesses while acknowledging the needs of our savers by not passing on the full 25 basis point cut to our savings products,” Boyd added.
The following changes on the ASB’s Business Loan offers are effective from Thursday 5 June 2025 for both new and existing customers.
| Business Loan | Current Rate | New Rate |
| Business and Rural Floating Base Rate | 4.94% | 4.69% |
| Business Base Rate | 11.77% | 11.52% |
| Rural Base Rate | 9.01% | 8.76% |
| Corporate Indicator Rate | 6.18% | 5.93% |
| Special Purpose Base Rate | 4.75% | 4.50% |
The changes below are effective from Friday 6 June 2025 for new and existing customers.
| Savings | Band | Current Rate | New Rate |
| Savings On Call & ASB Cash Fund* | All Balances | 0.90% | 0.70% |
| Savings Plus** | No Bonus | 0.70% | 0.50% |
| Partial Bonus | 0.80% | 0.60% | |
| Full Bonus | 2.90% | 2.70% | |
| Headstart* | All Balances | 2.90% | 2.70% |
New home loan rates are effective from Wednesday 4 June 2025 for new lending customers, and Friday 6 June 2025 for existing lending customers.
| Home Loan* | Current Rates | New Rates |
| Housing Variable | 6.64% | 6.44% |
| Orbit Variable | 6.74% | 6.54% |
| Back My Build | 4.19% | 3.99% |
Kiwibank rate changes
Kiwibank is also revising its variable home loan and savings rates in response to the recent OCR changes.
New home lending rates are effective from Tuesday 3 June for new customers and Monday 16 June for existing customers.
| Product | Previous Rate | New Rate |
| Term loan – Variable | 6.50% | 6.35% |
| Term loan – Offset variable | 6.50% | 6.35% |
| Revolving loan | 6.55% | 6.40% |
For deposits, new rates are effective from Tuesday 3 June.
| Product | Previous Rate | New Rate |
| 90 Day Notice Saver | 3.35% | 3.10% |
| 32 Day Notice Saver | 2.80% | 2.55% |
| Product | Previous | New | ||
| Base rate | Bonus rate | Base rate | Bonus rate | |
| Standard Online Call | 2.50% | 0.00% | 2.25% | 0.00% |
| PIE Online Call | 2.50% | 0.00% | 2.25% | 0.00% |
| Business Online Call* | 2.50% | 0.05% | 2.25% | 0.05% |