Heartland Bank Raises Home Loan Rates But Still Leads Market, Despite Strong SBS Three-Year Offer

Date Published: 24 April 2024

Key Facts

• Heartland Bank, known for its competitive home loan rates, has increased all their fixed rates between +10 and +20 bps (basis points).
• Despite these increases, Heartland Bank maintains the market-leading position, except for their three-year offer, which is bested by SBS Bank’s recent 5.99% offer.
• Heartland Bank’s home loans have specific requirements including having at least 20% equity and intention to live in the purchased property, among others.
• Heartland Bank does not currently work with mortgage brokers for its home loans, except for its Reverse Mortgage product.

Article Summary

Heartland Bank, which is known for offering some of the most competitive rates on the market, has recently announced a rise between +10 and +20 basis points in all of its fixed home loan rates. Yet, even with this increase, the bank still holds the lead in terms of competitive rates in the market. The only exception to this is their three-year offer, where the SBS Bank’s current 5.99% offer takes the lead.

The upcoming winter real estate selling season, usually starting in May, brings high volumes of sales that offset the holiday-affected April. The high volumes return in October and November, but the peak season in March this year saw a 15% reduction in sales transactions as compared to the average over the past six years. As such, banks like Heartland see May as a potentially lucrative period, with increased volumes of sales that can cover the losses from disappointing peak seasons.

Heartland Bank home loans come with specific conditions. For example, potential home-buyers need to have at least a 20% equity and need to plan to live in the purchased property among other conditions. Also, Heartland Bank currently does not cooperate with mortgage brokers for its home loans, except for its Reverse Mortgage product. So, for those considering a loan from Heartland, it might be beneficial to negotiate and shop around.

Finally, to assess the impact of these raised home loan rates, using a full-function mortgage calculator can be helpful. Similarly, for those who currently hold a fixed term mortgage that is not up for renewal, a break fee calculator can be useful in assessing their options. However, break fees should be minimal in a rising market, and more relevant in a falling market.

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