Heartland Bank has cut it's floating mortgage rate by 45 basis points to 2.50%. This keeps it as the lowest floating mortgage rate of any bank.
Heartland home loans are a digital-only offering - which means the application can only be online, and only direct with Heartland. It cannot be sourced through brokers (unless you pay the broker directly in a private arrangement, of course).
To be eligible, customers must be refinancing or purchasing a standalone house on a single section, have a deposit or equity of at least 20% and live or intend to live in the home. A credit of $750 is available for customers who refinance their home loan to Heartland and take out a loan on the floating rate for at least 12 months. (Clawback applies if this is changed early.)
Heartland offers fixed term home loan rates and these are all lower than the new floating rate offer. 1.99% for 1-year fixed, 2.35% for 2-year fixed, and 2.45% for 3-year fixed, and none of these rates changed today.
Here is how Heartland's new low floating rate compares with all the other retail bank offers currently in the market.
|November 9, 2020||Floating rate||above|
|Bank of China||4.35||+1.85|
|China Construction Bank||5.00||+2.50|
There is a lot on the table.
The only other lower floating rate is the one Simplicity KiwiSaver offers its members for a first home loan - and you have to win a ballot to get their 2.25% offer.