6 May 2016
Heritage Bank announced today it will reduce interest rates across a range of variable rate loans for owner occupiers, investors and small business.
Heritage’s Standard Variable rate will drop to 5.14%, a reduction of 0.20%, ensuring it remains well below all of the big four banks and still among the sharpest in the market.
The reduction will also see Heritage offering market-leading rates from as low as 3.89% on its Home Advantage package product.
CEO Mr Peter Lock said the decision not only delivered a good outcome for borrowers, but also protected the interests of depositors.
“It’s important to consider that our customers include not just home loan borrowers, but also many people who rely on the income they receive from their investments at Heritage to fund their lifestyles,” Mr Lock said.
“When banks cut interest rates for home loan customers it normally also means cutting the interest they pay to investors.
“Our decision passes on pricing benefits to borrowers while seeking to maintain returns for many investors.
“It’s a fair balance between the best interests of our customers overall.”
The rate change will come into effect from Monday, 23 May.