Newly-branded Heritage Bank drops rates

by Adam Smith06 Dec 2011

Yet another lender has dropped its fixed rates below 6%.

Newly-badged Heritage Bank has cut rates across its fixed rate products. The mutual bank cut its one-year rate to 5.90%, and dropped its two and three-year rates to 5.95%. It will also cut fixed rates on business loans.

The cuts come following the lender's name change on 1 December from Heritage Building Society to Heritage Bank, capitalising on government banking reforms.

"We changed our name last week, but not our values and our absolute focus on the best interests of our members," Heritage chief executive John Minz said.

Heritage also announced last month it would distribute its products through mortgage brokers. After scaling back distribution through the third-party channel during the GFC, the lender said it would ramp back up its broker distribution in response to "significant demand".

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