Heritage decreases interest rates

Australia’s largest building society, Heritage, has announced that it will decrease its variable mortgage and business lending interest rates by 1.00 percent effective Friday, February 20, 2009 following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate.

Heritage CEO Mr John Minz said that Heritage had been closely monitoring recent market conditions and was pleased to be able to deliver to its members additional savings by passing on the full rate reduction to both retail and business banking product holders.

“I am also pleased to announce that Heritage will be reducing the interest rates on its major credit card products by 1.00 percent,” Mr Minz said.

“In the current environment, I am sure that the additional reductions in both mortgage and credit card repayments will be a welcome relief to household and business budgets.

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

Mr Minz added, “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.”

“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.

Heritage’s variable interest rates for our home loan products remain below the average of the major banks following these changes.

ENDS

* Based on a $150,000 loan over 25 years. 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.