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Heritage Bank announces 30-point rate cut

by Nick Bendel9 minute read
The Adviser

Heritage Bank has “recognised the need to offer sharper pricing” by unveiling a discounted variable rate of 4.69 per cent.

The offer applies to home loans of more than $150,000 up to a maximum LVR of 80 per cent.

The previous discounted rate was 4.99 per cent.

Heritage has also cut its standard variable rate from 5.64 per cent to 4.99 per cent.


Chief executive John Minz said the rate cuts were aimed at gaining market share from bigger rivals.

“The mortgage broker channel has become increasingly important to Heritage over the years. Around half of our mortgages are now originated through our broker partners,” Mr Minz said.

“The home loan market is extremely competitive at the moment, so we recognised the need to offer sharper pricing and greater flexibility.”

Heritage recently unveiled a one-year fixed rate of 3.99 per cent. This temporary offer, which expires on October 10, is the lowest rate in the bank’s 139-year history.

Heritage also offers a five-year fixed rate of 4.99 per cent.

“We’ve had a lot of interest since we announced cuts to a number of our fixed-rate loans in August and we expect similar strong interest after launching our new variable rate deals,” Mr Minz said.

“With our excellent customer satisfaction ratings, Heritage is now an even more attractive option for customers and brokers alike to consider.”

[Related: Heritage Bank targets increase in broker sales]