Heritage Bank raises home loan interest rates while ING and BOQ cut

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on December 20, 2019
Heritage Bank raises home loan interest rates while ING and BOQ cut

Photo by Bob Ricca on Unsplash

Most lenders have been cutting their interest rates lately but one bank has bucked the trend and raised theirs.

Heritage Bank has announced it will be increasing variable rates by 10 basis points for new borrowers, effective from 18 December.

According to the bank, the changes were made to simplify the selection of mortgage products. CEO of Heritage Bank Peter Lock said their rates are still some of the most competitive in the market.

"We are trying to make comparing easier for borrowers by providing consistent rates across our mortgage products. Buying a new home should be an exciting experience. Aligning our rates across various products is a way we can simplify the decision process around finance for borrowers to help keep buying a house an enjoyable experience," Mr Lock said.

"We believe our rates are some of the most competitive in the market and complement our great product offering."

For owner occupiers:

  • Discount Variable for borrowers with a loan size of $150,000 or more and with a loan-to-value ratio (LVR) of 90% has been raised to 3.27% p.a. (3.32% p.a. comparison rate*)
  • Home Advantage Variable for borrowers with a loan size of $700,000 or more and an LVR of 90% has been raised to 3.37% p.a. (3.75% p.a. comparison rate*)
  • Home Advantage Variable for borrowers with a loan size of between $250,000 and 699,000 and an LVR of 90% has been raised to 3.42% p.a. (3.80% p.a. comparison rate*)
  • Home Advantage Variable for borrowers with a loan size of between $150,000 and $249,000 and an LVR of 90% has been raised to 3.47% p.a. (3.85% p.a. comparison rate*)

For investors:

  • Investment Discount Variable for borrowers making P&I repayments with an LVR of 90% has been raised to 3.57% p.a. (3.62% p.a. comparison rate*)
  • Home Advantage Investment Variable for borrowers making P&I repayments with an LVR of 80% - 90% and a loan size of $700,000 plus has been raised to 3.62% p.a. (4.00% p.a. comparison rate*)
  • Home Advantage Investment Variable for borrowers making P&I repayments with an LVR of 80% - 90% and a loan size of $250,000 - $699,000 has been raised to 3.67% p.a. (4.05% p.a. comparison rate*)
  • Home Advantage Investment Variable for borrowers making P&I repayments with an LVR of 80% - 90% and a loan size of $150,000 - $249,000 has been raised to 3.72% p.a. (4.10% p.a. comparison rate*)
  • Home Advantage Investment Variable for borrowers making IO repayments with an LVR of 80% - 90% and a loan size of $700,000 and over has been raised to 3.92% p.a. (4.29% p.a. comparison rate*) 
  • Home Advantage Investment Variable for borrowers making IO repayments with an LVR of 80% - 90% and a loan size of $250,000 - $699,000 has been raised to 3.97% p.a. (4.34% p.a. comparison rate*)
  • Home Advantage Investment Variable for borrowers making IO repayments with an LVR of 80% - 90% and a loan size of $150,000 - $249,000 has been raised to 4.02% p.a. (4.39% p.a. comparison rate*)

Looking for a low variable rate home loan? The table below displays a selection of variable-rate home loans on offer, featuring a low-rate pick from each of the following three categories: the big four banks, the top 10 customer-owned banks, and the larger non-banks.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 25, 2022. View disclaimer.

 

ING rate cuts

Popular online lender ING cut its fixed home loan rates by up to 65 basis points, effective from today.

For owner occupiers:

  • Orange Advantage Residential Fixed 1 year for borrowers with a loan size over $150,000 has been cut by 25 basis points to 2.89% p.a. (4.24% p.a. comparison rate*)
  • Orange Advantage Residential Fixed 3 years for borrowers with a loan size over $150,000 has been cut by 10 basis points to 2.84% p.a. (3.98% p.a. comparison rate*)
  • Orange Advantage Residential Fixed 4 years for borrowers with a loan size over $150,000 has been cut by 45 basis points to 2.99% p.a. (3.92% p.a. comparison rate*)
  • Orange Advantage Residential Fixed 5 years for borrowers with a loan size over $150,000 has been cut by 45 basis points to 2.99% p.a. (3.83% p.a. comparison rate*)
  • Residential Fixed 1 year has been cut by 25 basis points to 2.99% p.a. (4.25% p.a. comparison rate*)
  • Residential Fixed 3 year has been cut by 10 basis points to 2.94% p.a. (4.01% p.a. comparison rate*)
  • Residential Fixed 4 year has been cut by 45 basis points to 3.09% p.a. (3.95% p.a. comparison rate*)
  • Residential Fixed 5 year has been cut by 45 basis points to 3.09% p.a. (3.87% p.a. comparison rate*)

For investors:

  • Investment Fixed 1 year for borrowers making IO repayments has been cut by 45 basis points to 3.34% p.a. (5.25% p.a. comparison rate*)
  • Investment Fixed 2 year for borrowers making IO repayments has been cut by 25 basis points to 3.34% p.a. (5.11% p.a. comparison rate*)
  • Investment Fixed 3 year for borrowers making IO repayments has been cut by 30 basis points to 3.29% p.a. (4.98% p.a. comparison rate*)
  • Investment Fixed 4 year for borrowers making IO repayments has been cut by 65 basis points to 3.44% p.a. (4.90% p.a. comparison rate*)
  • Investment Fixed 5 year for borrowers making IO repayments has been cut by 65 basis points to 3.44% p.a. (4.80% p.a. comparison rate*)
  • Investment Fixed 1 year for borrowers making P&I repayments has been cut by 40 basis points to 3.14% p.a. (4.86% p.a. comparison rate*)
  • Investment Fixed 2 year for borrowers making P&I repayments has been cut by 20 basis points to 3.14% p.a. (4.70% p.a. comparison rate*)
  • Investment Fixed 3 year for borrowers making P&I repayments has been cut by 25 basis points to 3.09% p.a. (4.53% p.a. comparison rate*)
  • Investment Fixed 4 year for borrowers making P&I repayments has been cut by 60 basis points to 3.24% p.a. (4.44% p.a. comparison rate*)
  • Investment Fixed 5 year for borrowers making P&I repayments has been cut by 60 basis points to 3.24% p.a. (4.32% p.a. comparison rate*)

BOQ rate cuts

Bank of Queensland has cut home loan rates across their fixed products by 20 basis points, effective from today.

For owner occupiers:

  • Home Loan Privileges Residential Fixed 2 years discounted rate for a loan size of $300,000 has been cut by 20 basis points to 2.89% p.a. (4.03% p.a. comparison rate*) 
  • Home Loan Privileges Residential Fixed 2 Years discounted rate for a loan size of $150,000 has been cut by 20 basis points to 3.09% p.a. (4.06% p.a. comparison rate*)
  • Residential Fixed 2 years discount rate for a loan size of $300,000 has been cut by 20 basis points to 2.89% p.a. (3.76% p.a. comparison rate*)
  • Residential Fixed 2 years discount rate for a loan size of $150,000 has been cut by 20 basis points to 3.09% p.a. (3.80% p.a. comparison rate*)

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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author-avatar
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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