Increase to variable home loan rates
Ongoing cost pressures
have forced Heritage Bank to pass on a slight increase to variable interest
rates for some owner-occupier home loans.
Variable interest rates on
selected products will increase by 0.10% from today (Thursday, 4 May).
Even after the increase,
Heritage’s Standard Variable rate will be just 5.14%, and the special Discount
Variable rate will be just 3.99%.
By comparison, the average
standard variable rate of the four big banks is 5.33%
CEO Peter Lock said
Heritage always strived to provide borrowers with the best rates possible, but
had to balance that desire against the need to protect the long-term
sustainability of the business.
“Unlike the big banks,
maximising profit is not our top priority,” he said
“However we do need to
keep investing back into the business with a range of technology improvements
and branch upgrades to provide our customers with great service,” he said.
“We’re in an environment
where we are facing higher costs to provide our services and the investment
needed to improve them.
“To afford that investment
and to remain sustainable, we have to recoup the extra costs that we’re
currently incurring to run the business.
“As always, the long-term best
interests of our customers are top of mind in any decisions that we make.”
Mr Lock said it was also
important to consider the interests of all Heritage customers, which included
savers as well as borrowers.
“People like retirees rely
on the income they receive from their savings and investments to pay for their
everyday living expenses. We have to be mindful of their situation, and the
impacts of pricing decisions.
“That’s why we’ve also
decided to increase the interest rates payable on a number of our Term
Deposits, also effective from 4 May,” he said.
The 3-year Term Deposit
rate will increase 0.20% to 3.00%, while the 4-year and 5-year rates will
increase by 0.15% also to 3.00%.