Powered by MOMENTUM MEDIA
subscribe to our newsletter

Bank cuts mortgage rates by up to 40bps

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.  

Heritage Bank has announced cuts of up to 40 basis points across its owner-occupied and investment fixed rates.

The bank’s changes, which are effective from 17 April, are as follows:

  • owner-occupied principal and interest fixed rates have been cut by up to 30bps, with rates now starting from 3.79 per cent
  • investment principal and interest rates have been cut by up to 40 basis points, with rates now starting from 3.94 per cent
  • interest-only fixed rates have been cut by up to 20 basis points, with rates now starting from 4.19 per cent

Following the announcement, Heritage CEO Peter Lock said that the bank’s changes could help ease housing affordability pressures for borrowers.

“We’re all about providing great value to our customers,” he said. “We do that through the fantastic service that we provide and also by offering extremely competitive rates.”

Advertisement
Advertisement

Mr Lock added: “We want to encourage more people to look to us for their home loan solutions, and the market-leading flexibility of our fixed rate products is a real advantage.

“For many, housing affordability is becoming more of a reality. The flexibility of our fixed rate products when coupled with our well-recognised family guarantee product provide practical solutions for those looking to enter into the housing market for the first time.”

Heritage Bank’s rate changes follow moves from Westpac, the Commonwealth Bank of Australia and Bendigo Bank, who also cut their fixed mortgage rates by up to 30 basis points last week.

INGMacquarie, ME, HomeStartSuncorp BankTeachers Mutual Bank and Adelaide Bank also recently announced rate reductions on either their fixed rate or variable home loan products.

Conversely, AMPMyStateNAB and its subsidiary UBank, the Bank of Queensland and Virgin Money have increased rates since the start of 2019, citing funding cost pressures.

PROMOTED CONTENT


Despite the out-of-cycle rate changes, the Reserve Bank of Australia (RBA) has held the official cash rate at 1.5 per cent.

However, some analysts, including AMP chief economist Shane Oliver and NAB chief economist, market, Ivan Colhoun, expect the RBA to drop the cash rate over the coming months, in response to weak housing market conditions and subdued wage growth.

[Related: Westpac reprices home loans]

Bank cuts mortgage rates by up to 40bps
Heritage Bank
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

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

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

Latest News

Home ownership costs jumped by 130 per cent over two generations, with Gen X spending a quarter of their income servicing their loan, accord...

Fintech lender Tic:Toc has secured $25 billion of additional funding for the next seven years, after extending a partnership with Bendigo an...

The non-bank lender has closed its first RMBS deal under the Bluestone Prime program, worth $700 million. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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