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Heritage cuts discount variable rate

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rate cut  x
James Mitchell 8 minute read

Heritage Bank has just announced a new discount variable mortgage rate for owner-occupiers.

The bank has reduced its discount variable home loan rate by six basis points to 4.08 per cent. The offer applies to new owner-occupier home loans of more than $150,000. The cut is one of a number of reductions made to the interest rates on several of Heritage’s home loan products.

Heritage Bank head of branch and third-party channels David Ure said the new discount variable rate was one of the best on offer in the country.

“Heritage offers extremely competitive rates, along with a great range of products and outstanding service,” Mr Ure said.

“On top of cutting our interest rates, we are currently waiving application fees on new standard variable, discount variable and fixed rate home loans until 30 November 2015. That alone could save customers $600.

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“We have also recently released a new Home Advantage Package that offers significant potential savings, through discounts and fee waivers, for customers who package together their home loan, credit card and transaction account.

“Heritage is definitely a great option for brokers to consider for their customers.”

Speaking with The Adviser last month, Heritage Bank CEO John Minz said brokers originated about 46 per cent of all loans approved in the last financial year.

“We’ve been involved in the broker channel since 1998,” he said.

“It’s a very meaningful channel for us, it gives us diversification geographically. It gives us significant volume that we can’t get in southeast Queensland. It is a very good way of building the business and has worked for us for quite some time.”

Mr Minz, who will retire as chief executive later this year, said the bank is dedicated to further growing its broker business. He predicts that half of all Heritage Bank home loans will be written by a broker this financial year.

“Earlier this calendar year we really kick-started the work we’ve been doing for a long time with brokers,” he said.

“We increased commission and reinforced that the third-party channel is a partnership,” he said. “We put on additional resources in WA and Victoria. That gives us the confidence that we will be somewhere around 50 per cent generated from the broker channel over this coming financial year.”

[Related: 'We needed to slow investor growth', says Heritage]

Heritage cuts discount variable rate
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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