Bank cuts business rates by full 1.0%

by Madison Utley27 Mar 2020

To help customers negatively impacted by the COVID-19 downturn, a bank has announced a full 1.0% cut to its business banking loans rates and a 0.25% reduction to variable rate personal loans.  

Heritage will also cut most fixed rate home loans, up to 0.30% for a one-year owner-occupier and 0.29% for a one-year investor loan; however, variable home loan rates will remain the same, with the group’s 2.87% offer the lowest available from the group. 

All changes come into effect from 1 April.

CEO Peter Lock said, “Our home loan rates are already among the lowest in the market, and we’ll be extending cuts across most of our fixed-rate loans.

“But we are extending the benefits to more than home loan customers. We specialise in the small business sector, and we know they face particular difficulties in the current environment. That’s why we’ve cut a full 1.00% from our business banking rates.

“We believe this package of rate cuts will help provide greater assistance to a wider range of customers in these uncertain times.”

The other relief measures now available to customers affected by COVID-19 include:

  • Deferral of scheduled home loan and business banking loan repayments by up to 6 months
  • Waiving fees associated with restructuring of loans, as needed
  • Removal of all arrears, default and dishonour fees for impacted customers for the next six months
  • Waiving or refunding fees incurred because COVID-19 pandemic impacts have made it impossible for customers to meet requirements of their accounts - for example, missed payments
  • Early redemption on Term Deposits and Farm Deposit Management accounts for customers impacted by the pandemic, without fees or penalties