The new offer is well below that of its closest competition
Heartland Bank has dropped its floating home loan rate to 2.50% p.a. – the lowest floating rate currently offered by a bank in New Zealand.
None of the major banks are currently offering floating rates below 3%, meaning Heartland’s offer is significantly lower than its competition. The new floating rate follows Heartland’s recent return to the home loans market, where it is offering a series of fixed-term mortgage rates all below 3%.
Heartland Group CEO Jeff Greenslade says customers are looking for significantly cheaper floating rate options than are currently being made available.
“Customers shouldn’t have to pay so much for their floating home loan – nor should they have to take time from their busy day to go to the bank or meet with a mortgage manager to refinance their home,” Greenslade said.
Read more: Heartland Bank launches lowest home loan rate in NZ history
“By digitalising the application process, we can save our customers time and money.”
“We’ve learnt a lot from our customers since re-entering the market in October and have made changes to expand our approval criteria,” he added.
“Customers refinancing at our floating rate are also eligible for a $750 credit.”
Greenslade noted that Heartland’s online home loans platform would allow customers to apply for a mortgage and get approved without needed to make an in-person appointment. He says Heartland’s status as a New Zealand-owned and managed bank will also be key to its strategy going forward.
“Heartland’s group structure provides us with broader funding flexibility,” he stated.
“Alongside our digital strategy, we're able to offer products through innovative channels at a lower cost, and can pass that onto the borrower.”
Heartland home loans are available to customers refinancing or purchasing a standalone home on a single section. They must have 20% equity and intend to live in the home.
