Heritage Bank has been forced to react to rising costs and changing government regulatory requirements by increasing interest rates on a range of investment home loans.
Rates will increase by 0.25% across most investor home loan products.
CEO Peter Lock said Heritage was always striving for the right balance between the needs of both savers and borrowers, as well as the impacts of rising costs and changing regulatory demands.
“At Heritage, we are investing back into the business with a range of technology improvements and branch upgrades to provide our customers with great service,” he said.
“To afford that investment, we have to recoup the extra costs that we’re currently incurring to run the business.
“In doing so, we look to balance the different needs of all our customers, whether you’re a retiree looking to live off your savings, a family with a home loan looking to get the best value possible, or an investor looking to build a portfolio..
“We also have to respond to regulatory requirements to limit growth in investor lending.
“Overall, we believe our decision to increase investor home loans strikes that right balance.”
Mr Lock said Heritage still maintained some of the sharpest home loan prices in the market, both for investors and owner-occupiers.
Investors can now access a special Discount Variable rate starting at 4.49% per annum, and owner-occupiers a special Discount Variable rate starting at 3.89% per annum.