Key Facts:

– Squirrel CEO David Cunningham believes that ASB’s high mortgage rates are hurting its market share.
– ASB recently increased its fixed mortgage rates to counter rising funding costs in the wholesale market.
– According to Cunningham, ASB’s mortgage rates are now considerably higher than other banks, impacting their ability to attract new borrowers.
– Squirrel Mortgage Brokers have seen an influx of customers looking to refinance from ASB due to the rate increase.
– ASB’s increasing rates also highlight the wider trend of rising mortgage rates in New Zealand.

Article Summary:

David Cunningham, CEO of Squirrel mortgage brokers, has expressed concern over ASB Bank’s high mortgage rates and their impact on the bank’s market share. ASB recently increased its fixed mortgage rates to offset rising funding costs in the wholesale market. However, Cunningham believes that these higher rates are leaving ASB uncompetitive compared to other banks in the market. The Squirrel team has noticed an increasing number of customers seeking to refinance their mortgages away from ASB due to the rate hikes.

This situation highlights the broader trend of rising mortgage rates across New Zealand. While ASB’s decision to raise rates is driven by their own funding costs, it is indicative of an industry-wide movement towards higher interest rates. As a result, homeowners and potential buyers should be aware of these changes when considering their mortgage options.

To read the full article, go to: https://www.interest.co.nz/banking/124318/squirrels-david-cunningham-says-asbs-high-mortgage-rates-are-hitting-its-market