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

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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
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
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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 27, 2021. 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 2020. They are (in descending order): Great Southern Bank, 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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, Performance Drive 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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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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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