Rate rise for investment home loans
Heritage Bank has been
forced to react to rising costs and changing government regulatory requirements
by increasing interest rates on a range of investment home loans.
Rates will increase by
0.25% across most investor home loan products.
CEO Peter Lock said
Heritage was always striving for the right balance between the needs of both
savers and borrowers, as well as the impacts of rising costs and changing
“At Heritage, we are
investing back into the business with a range of technology improvements and
branch upgrades to provide our customers with great service,” he said.
“To afford that
investment, we have to recoup the extra costs that we’re currently incurring to
run the business.
“In doing so, we look to
balance the different needs of all our customers, whether you’re a retiree looking
to live off your savings, a family with a home loan looking to get the best
value possible, or an investor looking to build a portfolio..
“We also have to respond
to regulatory requirements to limit growth in investor lending.
“Overall, we believe our
decision to increase investor home loans strikes that right balance.”
Mr Lock said Heritage
still maintained some of the sharpest home loan prices in the market, both for
investors and owner-occupiers.
Investors can now access a
special Discount Variable rate starting at 4.49% per annum, and owner-occupiers
a special Discount Variable rate starting at 3.89% per annum.