In communication sent to brokers obtained by Australian Broker, the non-major unveiled its Home Advantage Package to replace its Professional Package, which was withdrawn from sale on 1 June 2015.
The new Home Advantage Package will allow consumers to package their standard variable, fixed rate or living equity loan together with a credit card and transaction account.
The package will not attract any application fee, monthly fees, redraw or switching fees for home loans, however it will have an annual package fee of $350. Unlimited multiple loans may also be included in the package.
Heritage’s communication to brokers also set out increased interest rates on selected variable rate investment products “in an effort to ensure [the lender] meet[s] APRA's expectations of responsible lending to investors”.
According to the broker alert, the discount standard variable rate (special offer rate) will be increased by 0.30%, to 4.49%. The Home Advantage standard variable rates will also be increased by 0.30%, ranging from 4.49% for loans of $700,000 or more to 4.64% for loans of $150,000 to $249,999.
Fixed rates for investment loans will also be increased by 0.10% across the board. The standard one-year fixed rate will be increased to 4.49%, the two and three-year fixed rates will be 4.59% and the five-year fixed rate will be 4.69%.
The updated Home Advantage fixed rates for investment loans will be the same as the standard fixed rates.
These rate changes have been applied to new investment loans, effective from Thursday 16 July 2015.
