Heritage Bank moves on investor home loan rates

Heritage Bank announced today that changing environmental conditions had forced an increase to interest rates on investment home loans, effective from 17 January.

Rates on new and existing variable investment loans will increase by 0.15%, while 2 - 5 year fixed rate loans will increase by 0.10%

CEO Peter Lock said the decision reflected the changing funding environment that financial institutions now faced.

“The cost of funding our loans is affected by the overall state of financial markets. Changing circumstances such as increased financial volatility do have an impact on markets and can flow through to increase our costs,” Mr Lock said.

“It’s important to note that we retain all the profits we make, and use them to benefit our customers. That’s unlike the big banks, which use profits to pay dividends to shareholders.

“It’s also important to note that our customers include investors and depositors, as well as borrowers, and our pricing decisions have to keep their interests in mind as well.

“We will continue to adjust our pricing, for both depositors and borrowers, depending on what is happening across the marketplace.

“Our home loan rates remain among the most competitive in the country.”


* 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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