Heritage passes on full interest rate decrease

Australia’s largest building society, Heritage, has announced that it will pass on the full 0.25 per cent interest rate decrease to its variable mortgage interest rates following yesterday’s official announcement by the Reserve Bank of Australia (RBA) to decrease the official cash rate.

Heritage CEO Mr John Minz said that Heritage now offered its members a significantly better deal than its competitors, including the major banks.

“As a mutual building society our focus is on delivering a better deal to our members. This can only be achieved through strong long-term management of our balance sheet, diversified funding sources and our mutual business model. This allows us to provide our members with better value and the tangible benefits of passing on the full RBA interest rate decrease,” Mr Minz said.

“Heritage is a strong and robust mutual organisation and our ability to pass on this latest interest rate reduction is a testament to our financial strength and stability.

“I believe this is a reflection of our prudent business model that has been the foundation of the Society’s continuing strong success.

“In spite of the economic conditions the Society continues to show the benefits of sustaining our high quality loan book which is demonstrated by the Society’s low mortgage arrears rate[1] of 0.35% that was recorded at 31 December, 2008.”

Mr Minz added, “In the current environment, I am sure that the additional reductions in mortgage repayments will be a welcome relief to many household budgets.”

“At Heritage, we understand the pressures that the current economic climate has had on our members. We anticipate the announcement of further rate reductions will not only assist families with their mortgage repayments but also give first home buyers encouragement to enter the property market.”

“At Heritage, our focus is on putting People first, and to demonstrate this, the Society is still offering competitive interest rates across its range of savings and term deposit accounts. Any reduction on the interest rates applying to these products will be delayed to ensure that our members continue to get a better deal,” Mr Minz said.

“Heritage will continue to provide safety and security for its members. As Australia’s largest building society we offer our members a better deal by providing lower fees and charges, higher deposit rates, lower lending rates and better service as compared to the major banks.

“Heritage continues to stay away from high risk loans such as low-doc and no-doc loans. With one of the lowest mortgage arrears rates in the industry, the Society is continues to show the benefits of sustaining our high quality loan book,” Mr Minz said.



[1] Percentage of mortgage loans in arrears greater than 30 days.

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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