Heritage Bank and ME have both announced that they have cut interest rates on a range of owner-occupied and investor home loans by up to 30 basis points.
Following on from several non-bank lenders, such as Bluestone, cutting rates, Heritage and ME have both announced that they are reducing rates on a range of products today.
Heritage Bank rate cuts
Heritage has announced that it will reduce some of its fixed rates, owner-occupier and investor variable rates for new borrowers.
The largest rate reductions will be for fixed rate home loans, which will be reduced by up to 30 basis points.
As of today (6 September), the lowest rate now available on a new fixed rate owner-occupier home loan will be 2.99 per cent (3.67 per cent comparison). This is for the owner-occupiers taking out a Home Advantage Package on a three-year fixed rate for loans of $150,000 or more on a principal and interest repayment.
Meanwhile, selected owner-occupier variable rates will reduce by up to 0.10 per cent.
The lowest discount variable rate for owner-occupiers paying principal and interest on a loan of $150,000 or more (up to 80 per cent LVR) will be 3.22 per cent (3.24 per cent comparison).
All discount variable and Home Advantage Package variable rates for investors will also drop by up to 0.15 per cent for new borrowers.
For example, the discount variable rate for investors paying principal and interest on a home loan of $700,000 or more (and an LVR of up to 80 per cent) will see rates starting from 3.57 per cent (3.93 per cent comparison).
Speaking of the rate reductions, Heritage Bank CEO Peter Lock said: “As a customer-owned bank, our focus is on providing our members with great value overall.
“Offering these competitive rates to new owner-occupiers and investors is just one of the ways Heritage is attracting and growing its customer base to ensure we stay strong into the future.
“Unlike the big banks, our focus is not on maximising profits for shareholders, instead we look to provide genuine value by combining our great rates with personalised service and award-winning products.”
ME bank cuts variable and fixed home loan rates
As well as Heritage, ME has also announced that it has cut some of its variable and fixed home loan rates by up to 30 basis points.
The rate cuts will apply for both investment and owner-occupied home loans from Friday (6 September).
From today, the variable rate for a Flexible Home Loan with a Member Package (for owner-occupiers paying principal and interest with an LVR of ≤80 per cent and loan amount of $700,000 or over) will drop by 10 basis points to 3.29 per cent (3.73 per cent comparison).
According to the bank, this is the lender’s “most competitive advertised variable rate ever offered”.
Those with a Flexible Home Loan with a Member Package (for owner-occupiers paying principal and interest with an LVR of between 80 and 90 per cent for loans of $400,000 and over) will see rates drop by 30 basis points to 3.57 per cent (4.00 per cent comparison).
ME is also dropping the rate on its three-year fixed rate investment loans, with those paying principal and interest on loans with a loan-to-value ratio up to 90 per cent seeing rates drop by 20 basis points to 3.48 per cent (4.25 per cent comparison).
Investors with a three-year fixed rate investment loan (≤80 per cent LVR) and paying interest-only repayments will also see rates drop by 20 basis points. This will bring the new rate to 3.69 per cent (4.18 per cent comparison).
[Related: Bluestone drops variable mortgage rates]