ASB is cutting its 4 and 5 year fixed home loan rates by 40 basis points. The new rates are effective tomorrow, Friday 18 May.

These cuts follow reductions to the 1, 2 and 3 year fixed home loan rates, announced earlier this week.

ASB fixed rate home loan interest rate changes, effective 18 May 2012:

Term Interest rate Change

4 year, 6.10%, - 0.40%

5 year, 6.50%, - 0.40%