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A leading mutual has cut the interest rate on its one-year fixed rate home loan to 4.49 per cent p.a.
Heritage Bank cut its one-year fixed rate by 40 basis points from 4.89 per cent.
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David Ure, head of intermediaries at Heritage, said the rate reduction was another reason for brokers to consider Heritage Bank for their customers.
“Our 'People first' philosophy is all about providing the best experience possible to the people we deal with,” he said.
“When you add to that the fact that we offer some of the lowest interest rates in the market, then it’s a very attractive package for brokers.”
Mr Ure said he expects one more rate reduction in this cycle before rates begin to head back up.
"My view is that there could be another small reduction ahead, but after that I think rates will start heading back up again slightly.
"Given that we are already at extremely low levels, there's not a lot of room left to reduce much further," he said.
Heritage's move follows rate reductions from several other non-major lenders in the past week with both Citi and Widebay dropping rates.
