Heritage Bank has changed a range of its interest rates, as follows:
HOME LOANS – new lending, switches and refixes
Heritage Bank has announced it will increase interest rates on its variable home loans by 0.25%, following the Reserve Bank of Australia’s (RBA) decision to increase the Official Cash Rate by the same amount. The increase in the cash rate has added to the growing pressure on Heritage’s funding costs, forcing the bank to pass on the rate rise.
The change will apply to all variable rate home loans, and variable rate Business Banking loans, effective from Monday, 23 May. New borrowers can still get a rate as low as 2.40% (2.42% Comparison Rate*) on our Owner Occupier Discount Variable product with a loan-to-value ratio equal to or below 80%.
In good news for depositors, Heritage is also increasing interest rates on deposit and term deposit products from Wednesday, 1 June. Rates on term deposits will go up by as much as 1.62%, with the interest rate on a 60-month term deposit increasing to 2.50%. Interest rates on other term deposit options will go up by between 0.10% and 1.37%.
A range of other deposit accounts like Heritage’s Pension Plus, Online Saver, Target Bonus and Christmas Club interest rates will also increase by 0.15%.
You can find links to all our current interest rates on our interest rates page.