Out of cycle fixed and variable investor loan rate cuts at Heritage Bank

Heritage Bank has announced cuts to mortgage rates for investors. Heritage has reduced both variable and fixed term interest rates for investors from today June 3. There is a 2.39% rate on Heritage’s 1, 2 and 3-year investor fixed rate principal and interest product for borrowers with a loan to value ratio (LVR) equal to or less than 90%. It reflected a reduction of up to 0.40% Heritage Bank CEO Peter Lock sai. “As a mutual, our aim is always to provide the best possible rates we can for our borrowers and these out-of-cycle cuts demonstrate that. “Current conditions mean that we’re in a position to reduce rates for borrowers." Heritage also offers an interest rate of 2.49% on 1, 2 and 3-year investor Fixed Rate interest-only loans, for borrowers with an LVR equal to or less than 90%. It reflected a 0.50% cut on the 1-year interest-only fixed rate. Other interest rate cuts for investors include 0.10% reductions on Home Advantage Variable for borrowers of $250,000 to $699,999 with an LVR of equal to or less than 80%. The last four-year fixed home loan rate under 2 per cent has ended the cheaper longer-term fixed rates in Australia. At the start of the year RateCity noted there were 32 four-year fixed rates under 2 per cent, including from three of the big four banks. BankVic was the last lender to hold out, however, on June 1, 2021 their rate rose from 1.95 per cent to 2.29 per cent. Heritage don't offer four year lows, with their 5 year fixed at 2.89%. Earlier this year the Queensland-based Heritage Bank announced it would open two new branches in New South Wales - at Macquarie Park in north-west Sydney, and one at Tweed Heads. Heritage opened new branches at Castle Hill and Parramatta in 2019 to kick-start an interstate expansion program, initially targeting Sydney and then looking to Melbourne. Lock said the Castle Hill and Parramatta branches had together attracted a significant number of new members, $30 million in mortgage lending and more than $100 million in deposits in their first year, even though COVID struck soon after opening. The Macquarie Park Branch is due to open in September and the Tweed Heads Branch in October this year. Heritage Bank has been chaired by Kerry Betros since 2012, a year after Heritage become a bank in 2011.