Heritage Bank’s home loan interest rates just got more affordable as it shaves off 10 basis points on its variable loan rates effective since August 24.

The discount variable rate for the owner-occupied home loan is now pegged at 4.49 per cent, while the standard variable rate sits at 5.04 per cent.  When the special rate is applied to the discount variable, the interest rate goes lower at 3.79 per cent from a previous 3.98 per cent.

Under Heritage Bank’s Home Advantage variable rate package, borrowers looking to take out a mortgage for $150,000 to below $250,000 are offered an interest rate of 3.88 per cent, down from the 3.98 per cent offered at the start of the month. A new home loan of $250,000 to below $700,000 carries an interest rate of 3.84 per cent, lower than the previous weeks’ 3.94 per cent. Home buyers hoping to take out a loan of $700,000 or more can expect an interest rate of 3.79 per cent.

Fixed term loan rates remain largely unchanged with the interest rate pegged at 4.09 per cent and 3.84 per cent for a one-year and two-year term, respectively. A three-year fixed term gets an interest rate of 3.99 per cent and 4.49 per cent for a five-year fixed term.

Fixed term rates are the same under the Home Advantage deal, with the noticeable lower interest rate for the two-year and three-year term which were previously at 3.99 per cent, and 4.19 per cent respectively at the beginning of August.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan