Heritage CEO says reforms help make banking sector fairer and more competitive

Federal Government reforms announced today will help create a fairer and more competitive banking sector that will ultimately deliver benefits to customers, according to Heritage Building Society CEO John Minz.

Mr Minz welcomed the measures contained in the Treasurer Wayne Swan’s banking package that will give mutuals - building societies and credit unions - fairer access to funding sources.

“These reforms mean the mutual sector is now better placed to act as the ‘fifth pillar’ of Australian banking by providing greater competition to the four major banks,” he said.

“In the past, the big banks have benefitted from government decisions that have given them access to sources of funding at cheaper rates. That made it more difficult for mutuals to be as competitive as they could be in offering lower interest rates and better choice to consumers who are sick of the big banks.

“A perception has also been created that the banks are somehow safer than mutuals.

But the reality is that credit unions and building societies are strong, secure and regulated the same way as banks.

“This reform package is a step forward in removing these barriers, creating a fairer playing field for Australia’s 120 mutuals, and positioning them to offer the kind of competition to the big banks that the marketplace has been calling for.

“Initiatives that help credit unions and building societies to compete on a level-playing field will help to keep the big banks honest and give customers a real choice.”

* 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.