ASB CEO Vittoria Shortt sees no sign of mortgage stress

ASB has been using high servicing rates. (Image: ASB)

Thu, 11 Aug 2022

About a third of ASB Bank’s home loan customers have rolled over onto higher fixed interest rates, on average paying about a percentage point more than they were previously, but the bank isn’t seeing any signs of distress amongst these customers, said its chief executive, Vittoria Shortt.That probably reflects the 6.45% servicing rate ASB has been using to ensure customers could afford their loans if rates rose, and the bank is now using a 7.85% rate, Shortt said.“When interest rates started to move down, we always had the vie...

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