Heritage delays rate rises until 2010

Australia’s largest building society, Heritage, has announced an increase in interest rates on all variable rate loans following the Reserve Bank of Australia’s (RBA) decision to increase the Official Cash Rate by 0.25 per cent.

Selected savings and investment products will rise by up to 0.25 per cent.

The interest rate increase for Heritage’s new and existing variable home loans and deposit products will be effective from Wednesday November 11, 2009.

Heritage has also increased a range of term deposit interest rates also effective Wednesday November 11, 2009.

Interest rates for credit cards and personal loan products are still under review.

Heritage CEO Mr John Minz said that the Society will minimise the impact that this increase has its members by delaying the increase in repayments until January 1, 2010.

“With an average increase of $40 per month to the average mortgage, this delay in repayments until next calendar year will allow our borrowers additional time to make household budget adjustments particularly during the Christmas period,” he said.

“Despite this increase, Heritage’s interest rates continue to remain lower than the average of the major banks and the majority of other lenders."

Source: Heritage BS