Heritage Bank announced today it will increase its variable home loan rates by 0.15%, effective from 27 November.
CEO Mr John Minz said the move would help generate the capital needed for Heritage to continue improving the products and services it provides for customers.
“This decision is in the best interests of our customers overall. We need to ensure that we earn a reasonable profit because that is the only way we can fund our ongoing investment in meeting customer needs,” Mr Minz said.
“A financially strong Heritage is good news for our customers as a whole.
“We still offer some of the best value home loans in the Australian market, and we have maintained the price advantage over the big banks that we traditionally offer.
“It’s important to note that we retain all the profits we make, and use them to benefit our customers. That’s unlike the big banks, which use profits to pay dividends to shareholders.
“It’s also important to note that our customers include investors and depositors, as well as borrowers, and our pricing decisions have to keep their interests in mind as well.
“We will continue to adjust our pricing, for both depositors and borrowers, depending on what is happening across the marketplace.”
The rate change will affect both owner-occupier and investor loans, and line of credit loans.