Love it, would be there in a heartbeat if I could.
Printable View
Love it, would be there in a heartbeat if I could.
Wow - fantastic! will definitely be witching myself at my next renewal.
Quote:
Heartland drops home loan rates to new lows
12/5/2021, 1:36 pm GENERALNZX/ASX release
12 May 2021
Heartland drops home loan rates to new lows: 1.85% p.a. 1-year fixed, 1.95% p.a. floating
Heartland Group Holdings Limited’s (Heartland Group) (NZX/ASX: HGH) subsidiary Heartland Bank Limited (Heartland Bank) (NZX: HBL) (together, Heartland) has disrupted the home loan market again, this time with the reduction of its 1-year fixed and floating term loan rates. This announcement comes shortly after Heartland broadened its mortgage offering with New Zealand’s lowest revolving credit facility rate.
The challenger bank now offers the following fixed and floating rates, which are each the lowest of their category:
1.85% p.a. 1-year fixed
2.35% p.a. 2-year fixed
2.45% p.a. 3-year fixed
1.95% p.a. floating term loan
2.35% p.a. floating revolving credit
In the quarter ended 31 March 2021, the fintech lender saw a 173% increase in average monthly drawdowns compared with the previous quarter ended 31 December 2020, and has received over 6,600 applications since re-entering the residential mortgage market in October 2020.
Heartland’s online process allows for a faster home loan approval than the traditional process with other lenders. Those who meet the eligibility criteria can fill out the digital application in minutes and get a decision online, with no need to make an appointment or arrange for someone to come to them.
“People shouldn’t need to pay so much for their mortgage,” explained Heartland Bank CEO Chris Flood. “Our approach to home loans is disrupting the traditional market in favour of a digital solution, one which can offer customers market-leading rates and time savings.”
Visit heartland.co.nz/home-loans to learn more about Heartland’s eligibility criteria.
Heartland Bank lending criteria, terms and conditions apply.
– ENDS –
The FINTECH lender
Like it
Wonder how the vehicle part demerger progressing
Not sure what lending at this rate does to their net interest margin...but everyone else seems happy about it so lets all have a group hug, lay around and be happy https://www.bing.com/images/search?v...26pid%3DImgRaw
I think this is more of a marketshare grab Beagle.
There is usually a lot of friction involved in changing mortgage providers, so most do not do it for a small 0.1 or 0.2 difference in mortgage rate. However HGH is now 0.5 cheaper than the major banks on fixed rates, and a whopping 2.5 cheaper on floating rates!, and I think that sort of gap will shift a lot of people.
I really think this is a massive growth business for HGH - and it won't be too long before they have a mortgage book over $1 Billion.
Some positive coverage https://www.interest.co.nz/personal-...one-year-fixed
Quote:
As the winter real estate season approached and housing market activity starts to fall away, one bank is making a big play for the remaining home loans business.
Heartland Bank has cut its already low rates sharply.
It's core one-year fixed rate has been sliced to 1.85%, a -14 bps drop from what was already the lowest rate in the bank mortgage market.
And it has cut its already low 2.50% floating rate to 1.95%, a major -55 bps reduction.
Further it has cut -40 bps from its revolving credit rate, taking it down to 2.35%.
These are eye-catching changes.
That one year fixed rate is a full -40 bps lower than any of the major banks. It is also -34 bps lower than any other bank's one year 'special', and -24 bps below the Cooperative Bank's one year FHB 'special'.
It is easily the lowest one year rate from any institution, ever.
Heartland's 1.95% floating rate is also a market low, far lower than the 3.40% from Kiwibank, or the 2.25% on offer from KiwiSaver provider Simplicity for their members.
All part of the strategy of promoting themselves to the finance world as a FINTECH company ...rather than a finance company (and pretend bank)
FINTECHs rewarded with higher market multiples they say.
Just want to emphasise that Mortgages are a massive blue ocean for HGH now that it has entered.
The NZ mortgage market is now over $300 Billion in size, so having a target as low as 1% of that market would grow HGH significantly.
But is it actually good for HGH to go bigly into the ordinary mortgage market?
Might as well sell up and buy ANZ.
Does anyone know if Heartland does not give preferential access to the brokers analysts?
Exactly, clearasmud, they can still hit ~4% NIM with these rates, so go for gold I say. They are certainly making a big push with TV advertising, so I think they are pretty serious about grabbing a slice of the action.
I had a rant recently about a failed application online, but it transpired I made a mistake and checked something by accident...I was accepted in the end. But Kiwibank have me tied in for another 12 months, so I'm stuck there for now. One thing I found though, while on the face of it the Heartland rates look very competitive, they are a bit light on the cash incentive side of things compared with what I'm used to getting at Kiwibank at least (it's been 2 years though), so could be a case of horses for courses.
Didnt’t Snoopy once explain how lending at sub 2% can still give a NIM of 4% seeing intuitively it can’t be done.
You can't get a NIM of 4% but you can get a good margin on the capital needed to support the lending. If you make a 1% margin on the RBNZ/other borrowing financed bit and 2% on the equity financed bit the return on equity is 11% (if equity finances 10% of the lending). The lower you can get the equity supporting the loans, the higher the return on equity.