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The non-major bank has announced changes to select mortgage interest rates for new borrowers, effective 18 December.
Heritage Bank has announced that rates on select Home Advantage Variable mortgage products will increase by 10 basis points, effective as of Wednesday, 18 December.
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New owner-occupiers taking out a Home Advantage Variable loan of between $250,000 and $699,999 and with a loan-to-value ratio (LVR) of between 80 and 90 per cent will have access to rates starting from 3.42 per cent (previously 3.32 per cent).
Owner-occupier borrowers with a loan value of $700,000 or more will see rates starting from 3.37 per cent, up from 3.27 per cent.
Those requiring a small Home Advantage Variable Owner Occupier loan (between $150,000 and $249,000) and with an LVR of between 80 and 90 per cent will have a rate starting from 3.47 per cent (up from 3.37 per cent).
Meanwhile, new investors making principal and interest (P&I) payments on their Home Advantage variable loan, with a value up to $699,999, will have access to rates starting from 3.67 per cent, up 10 basis points from 3.57 per cent.
For new investors taking a loan of over $700,000, rates will start from 3.62 per cent (previously 3.52 per cent).
New investors taking out a Home Advantage variable interest-only (IO) loan will see rates start from 3.97 per cent for loans between $250,000-$699,999, and from 3.92 per cent for loans $700,000 and more, up from 3.87 and 3.82, respectively.
According to Heritage Bank, the changes have been made in order to simplify the selection of mortgage products, by reducing their tiered rate system from three tiers to two tiers.
Further, the bank stated that the investment product interest rates have been altered to maintain consistency between owner-occupier and investment products.
Peter Lock, CEO of Heritage Bank, commented: “Finding the right home loan can be a daunting task, with the number of products and lenders available.
“We are trying to make comparing easier for borrowers by providing consistent rates across our mortgage products.
“Buying a new home should be an exciting experience. Aligning our rates across various products is a way we can simplify the decision process around finance for borrowers to help keep buying a house an enjoyable experience.
“We believe our rates are some of the most competitive in the market and complement our great product offering.”
[Related: TMB announces fixed rate changes]
