Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Heritage revises assessment rates

heritagebank  heritagebank
Charbel Kadib 4 minute read

The customer-owned bank has made changes to its home loan serviceability assessment policy, joining a host of other lenders to revise their rates in response to APRA’s new guidance.

In response to the Australian Prudential Regulation Authority’s (APRA) changes to its home lending guidance, Heritage Bank has announced that it will lower its interest rate floor for home loan serviceability assessments from 7.15 per cent to 5.75 per cent and increase its buffer rate from 2.2 per cent to 2.5 per cent.

The changes will apply to all new home loans assessed from 1 August 2019.

Following the announcement, Heritage CEO Peter Lock said: “The previous floor rates and buffers were simply no longer appropriate, given the historic low interest rate environment we are now in.

Advertisement
Advertisement

“We welcome the opportunity to review and lower our serviceability floor. This change will make it easier for people to qualify for a home loan, or to borrow more, without adding extra risk.

“Prudent measures are still in place to ensure people can afford their loan, but we’ve been able to remove what had become an artificially high barrier to home ownership.”

Heritage Bank joins the likes of ANZWestpac, the Commonwealth BankNABMacquarie, Suncorp, MyState BankBendigo and Adelaide Bank, the Bank of SydneyAuswide BankTeachers Mutual Bank, Advantedge and Bankwest, who have dropped their interest rate floors to as low as 5.3 per cent.

All the aforementioned lenders have also increased their buffer rates to 2.5 per cent, as per APRA’s guidance.

[Related: NAB revises home lending policy, undercuts big four peers]

PROMOTED CONTENT


 

Heritage revises assessment rates
heritagebank
TheAdviser logo
heritagebank
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

more from the adviser
House of Representatives NEW ta MPs highlight broker concerns in Parliament debate

The Member for Fisher says brokers back the bill repealing resp...

uptick graph Liberty reports surge in new loan originations

The non-bank has reported an 11 per cent growth in new loans writ...

Lleyton Hewitt Andre Agassi ta Tennis legends discuss business resilience amid COVID-19

Andre Agassi and Lleyton Hewitt underscored the importance of bus...

FROM THE WEB