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 Thursday October 15, 2009. Heritage has also increased a range of term deposit interest rates also effective Thursday October 15, 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,” 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.

* 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.