Heritage announces changes to interest rates

Australia’s largest building society, Heritage, has announced an increase in interest rates on all variable rate loans following the Reserve Bank of Australia’s (RBA) decision to increase the Official Cash Rate by 0.25 per cent.

Selected savings and investment products will rise by up to 0.25 per cent. The interest rate increase for Heritage’s new and existing variable home loans and deposit products will be effective from Wednesday November 11, 2009. Heritage has also increased a range of term deposit interest rates also effective Wednesday November 11, 2009.

Interest rates for credit cards and personal loan products are still under review.

Heritage CEO Mr John Minz said that the Society will minimise the impact that this increase has its members by delaying the increase in repayments until January 1, 2010.

“With an average increase of $40 per month to the average mortgage, this delay in repayments until next calendar year will allow our borrowers additional time to make household budget adjustments particularly during the Christmas period,” he said.

“Despite this increase, Heritage’s interest rates continue to remain lower than the average of the major banks and the majority of other lenders.

“Heritage members who are currently paying in excess of their required monthly repayments or have made payments in advance may not need to make any adjustment to their repayment amounts.”

Mr Minz added, “As Australia’s largest mutual building society, Heritage continues to provide the ‘mutual difference’ to its members by charging lower interest rates, lower fees and charges and higher deposit rates.”

Heritage is committed to its philosophy of putting People first and continues to be a strong competitor in the financial services sector, offering a better service and pricing structure in comparison to the major banks.

About Heritage

Headquartered in Toowoomba, the heart of the Darling Downs, Heritage is Australia’s largest building society with more than $7 billion in total consolidated assets.

With a 134-year history, Heritage provides a full suite of retail and business banking products, insurance and financial planning products and services to members via Heritage products and through alliances with specialist providers.

Heritage members have access to a network of 130 retail outlets throughout south east Queensland, and has broker services in Queensland, New South Wales, Victoria, South Australia and the ACT.

* 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.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.