PHOTO:TOM PULLAR-STRECKER/STUFF Kiwibank has dropped fixed interest rates for home loans to 2.99 per cent.

ASB and Kiwibank are set to offer interest rates below 3 per cent for the first time.

ASB is offering a two-year rate of 2.99 per cent, and Kiwibank a one-year rate.

Craig Sims, ASB executive general manager of retail banking, said the reduced rate would help New Zealanders manage their home loans during what has been a challenging period, as well as support others into home ownership.

Ed Sheeran

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“This has been a difficult time for a lot of our customers. While we have put in place a number of support options, including mortgage repayment deferrals and interest-only payments, we’re continually evolving what we are doing to help Kiwis get through the impact of Covid-19. Offering this two-year special rate is part of that.

 “We know every bit helps and we’re proud to be supporting New Zealanders with this special low rate which we hope will help our customers manage their home loans. We’re also confident it will be welcome news to those first home buyers looking to start their home ownership journey,” he said.