A bank has announced its decision to cut rates by up to 0.50 per cent on a number of its loan offerings.
Heritage Bank has announced that it has cut interest rates by up to 0.50 per cent on a range of its home loan offerings, with owner-occupier rates as low as 3.89 per cent. The cuts came into effect on Monday, 27 November.
Interest rates for Home Advantage variable owner-occupier loans with an LVR of less than 80 per cent have been cut by 0.10 per cent, with rates for $150,000 to $250, 000 loans now at 3.99 per cent, $250,000 to $700,000 loans at 3.94 per cent, and loans over 700,00 now at 3.89 per cent.
Investment Discount Variable Principal & Internist loans over $150,000 and with an LVR of less than 80 per cent have been cut by 0.30 per cent to 4.19 per cent.
First and second-year fixed rates for P&I investment loans have been cut by 0.20 per cent to 4.29 per cent.
Fixed rates for interest-only loans have also been cut, with rates for the first and second year cut by 0.40 per cent to 4.49 per cent.
Three-year and five-year fixed rates have also been reduced by 0.50 per cent to 4.49 per cent and 4.89 per cent, respectively.
CEO of Heritage Bank Peter Lock hopes that the decision will attract new customers to the regional lender.
“We’ve cut our rates to ensure we remain right in the sweet spot for competitiveness in the home loan market and to encourage even more people to enjoy the benefits of our people-first approach,” Mr Lock said.
“We do want to build and keep attracting new customers to the bank as part of a nationwide growth strategy.
“We’re a national player in the mortgage market via our broker partners, and our reduced rates, along with our overall service proposition, make us a great alternative for anyone in the market for a home loan.”
Heritage recently became the 22nd member of Aussie Home Loans’ lender panel, which Mr Lock believes will grant the bank access to more than 1,000 brokers across Australia and help the lender achieve its “national growth aspirations”.
The rate reduction change from the customer-owned bank has been announced amid a KPMG research reporting that mutual banks have collectively recorded balance sheet growth of 6.8 per cent and residential lending growth of 9.8 per cent ($83.4 billion) in 2017.