Heritage Bank to cut home loan and small business interest rates

6 May 2016

 

Heritage Bank announced today it will reduce interest rates across a range of variable rate loans for owner occupiers, investors and small business.  

 

Heritage’s Standard Variable rate will drop to 5.14%, a reduction of 0.20%, ensuring it remains well below all of the big four banks and still among the sharpest in the market.  

 

The reduction will also see Heritage offering market-leading rates from as low as 3.89% on its Home Advantage package product.   

 

CEO Mr Peter Lock said the decision not only delivered a good outcome for borrowers, but also protected the interests of depositors. 

 

“It’s important to consider that our customers include not just home loan borrowers, but also many people who rely on the income they receive from their investments at Heritage to fund their lifestyles,” Mr Lock said.

 

“When banks cut interest rates for home loan customers it normally also means cutting the interest they pay to investors. 

 

“Our decision passes on pricing benefits to borrowers while seeking to maintain returns for many investors. 

 

“It’s a fair balance between the best interests of our customers overall.” 

 

The rate change will come into effect from Monday, 23 May.


* 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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