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

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

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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.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayment
 

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 03 April 2020. 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 which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

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.

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*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.

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author-avatar
Emma joined Savings.com.au as a Finance Journalist in 2019. She is a journalist with more than five years experience across print, broadcast and digital media, with previous stints at Style Magazines, 4ZZZ radio, and as editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of young women and millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand. When she's not writing about finance she's watching Greys Anatomy (again).

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