Heartland drops home loan rates to 1.85% p.a. 1-year fixed, 1.95% p.a. floating

Updated: Nov 28

Heartland drops home loan rates to 1.85% p.a. 1-year fixed, 1.95% p.a. floating Whanganui Mansions
Heartland drops home loan rates to 1.85% p.a. 1-year fixed, 1.95% p.a. floating Whanganui Mansions

Heartland has disrupted the home loans market again, this time with the reduction of a number of its rates. This announcement comes shortly after Heartland broadened its online mortgage offering with the country’s lowest revolving credit facility rate.

The challenger bank now offers the following fixed and floating rates, which are each the lowest of their category (new rates in bold):

1.85% p.a. 1-year fixed

– 2.35% p.a. 2-year fixed

– 2.45% p.a. 3-year fixed

1.95% p.a. floating term loan

2.35% p.a. floating revolving credit

Heartland re-entered the residential mortgage market in October 2020 with its self-serve online home loans application and market-leading 1-year fixed rate. Since 31 December 2020, the fintech lender has seen a 173% increase in average monthly drawdowns, and has received over 6,600 applications since re-launching.

Heartland’s online process allows for a faster home loan approval than the traditional process with other lenders. Those who meet the eligibility criteria can fill out the digital application in minutes and get a decision online, with no need to make an appointment or arrange for someone to come to them.

The self-serve home loan application is designed to reduce the friction often associated with interacting with a bank, as it allows people to apply for a mortgage at their convenience without the help of a bank representative. The online process means there is a lower cost of onboarding – the savings from which can be passed on to the customer through the lowest rates in the country.

“People shouldn’t need to pay so much for their mortgage,” explained Heartland Bank CEO Chris Flood. “Our approach to home loans is disrupting the traditional market in favour of a digital solution, one which can offer customers market-leading rates and time savings.”

Homeowners who switch to Heartland’s 1.95% p.a. floating term rate and stay floating for 12 months can get a credit of up to $1,500. To be eligible for a Heartland Home Loan, customers must be refinancing or purchasing a standalone house on a single section in an urban New Zealand centre, have a deposit or equity of at least 20% and intend to live in the home.

Heartland Bank’s lending criteria, terms, conditions and fees apply. Interest rates are subject to change.

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