Heritage Bank announces cuts to fixed interest rate loans

13 November 2020

Heritage Bank will offer fixed rate home loans with an interest rate starting from as low as 2.19%, after announcing reductions to its rates today.

Heritage has cut its two-year fixed rate for owner-occupiers by 0.40%, down to 2.19%. Rates for loans of other owner-occupier fixed terms have been cut by between 0.20% and 0.30%.

Other reductions are as follows:

• Rates for fixed term investment loans have been reduced by between 0.09% and 0.29%.
• Rates for residentially-secured fixed term business loans have also been cut by between 0.11% and 0.31%.
• Rates for existing variable rate loans will remain the same, while rates for new Home Advantage variable rate loans will be reduced by between 0.04% and 0.14%%.

CEO Peter Lock said the rate cuts represented a balanced approach that took into account the long-term interests of all Heritage customers.

“As a country, we are navigating circumstances we’ve never encountered before, with the official cash rate now almost at zero, as well as the impacts of COVID,” he said.

“We need to consider the best way we can assist not only our borrowers but also our depositors, as well as acting in the long-term best interests of Heritage as whole.”

All reductions are effective from Thursday, 19 November.