Heartland returns to mortgage market with 2.89% interest rate

Borrowers will be able to access a mortgage rate of 2.89% thanks to a new offer launched Tuesday by Heartland Bank.

She has developed a digital home loan platform through which people will apply entirely online.

The proposed rates start at 2.89 percent for one year, up to 3.39 percent for three years.

The lowest reported one-year rate among the Big Four is 3.39%.

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There is no installation charge for the Heartland product. Clients must have a deposit of 20 percent or 20 percent of equity and plan to live in the property.

The property they wish to finance must be a stand-alone house in one of the major centers.

The amount offered is limited during the trial phase of the product launch, but chief executive Jeff Greenslade said he couldn’t reveal how much money was available to borrowers.

He said it was part of Heartland’s expansion. “What we are trying to test is the attractiveness of the digital platform.”

Customers won't have to go to a branch, or even talk to anyone, to apply for a home loan.


Customers won’t have to go to a branch, or even talk to anyone, to apply for a home loan.

The rates created very low margins for Heartland, he said, but if the trial was successful, he would set up wholesale loans that would create a better return.

If this did not pursue the product, the loans offered would still be honored and they would become liquidity assets for Heartland, he said.

Heartland hadn’t been in the home mortgage market for some time and during that time the lending environment had changed, he said.

The digital approach would reduce costs and keep prices low.

Customers were increasingly opting to transact online and through their phones, across various industries, he said. “We are testing whether this applies to home loans.”

The mortgage loans on offer would be simple and straightforward, he said, so the application process could be completed quickly.

Heartland already offers online business loans of up to $ 100,000.

Priscilla C. Carnegie