Powered by MOMENTUM MEDIA
the adviser logo
Lender

Heritage cuts discount variable rate

by James Mitchell4 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.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

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.

Advertisement
Advertisement

“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.

“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
rate cut  x
TheAdviser logo
rate cut  x

James Mitchell

James Mitchell

AUTHOR

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

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more