Mutual lender cuts variables rates

by Julia Corderoy10 Oct 2014
Mutual lender Heritage Bank has made cuts to variable interest rates in a bid to increase its market share during the busy spring selling season.

As of yesterday, the lender has slashed its interest rate to 4.69% on its discount variable product for loans of more than $150,000 up to 80% LVR. It has also trimmed its standard variable home loan rate to just 4.99%.

John Minz, Heritage Bank’s chief executive, says these are some of the lowest rates in the bank’s history.

“The mortgage broker channel has become increasingly important to Heritage over the years. Around half of our mortgages are now originated through our broker partners,” he said.

“The home loan market is extremely competitive at the moment, so we recognised the need to offer sharper pricing and greater flexibility. 

“That’s exactly what we’ve done and we’re now offering rates that are the lowest in our history, and more flexibility to meet what our competitors are offering.”