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In good news for members, Heritage and People’s Choice has announced it is cutting interest rates on a number of its home loans while also increasing returns on several key term deposit products.

Among the changes, 3-year fixed home loans will now be available for a very competitive 5.99% p.a. with 2-year terms at an equally attractive 6.09% p.a. 

The Heritage Bank 3-year Fixed Home Advantage Package Home Loan will drop 10 basis points to 5.99% p.a. (comparison rate 6.48% p.a.) with the People’s Choice 2-year Package Fixed Home Loan to be cut by 20 basis points to 6.09% p.a. (comparison rate 6.42% p.a.).

The cuts are across both brands and impact a number of different products, including:

• People’s Choice - Fixed Home Loans, Fixed Package Home Loans and Fixed Business Loans
• Heritage Bank - Fixed Home Loans, Home Advantage Fixed Home Loans, and Fixed Business Loans

With all products the rate reduction is dependent on the loan term:

• 1-year fixed rates will be cut by 25 basis points (bps)
• 2-year fixed rates by 20bps
• 3-year fixed rates by 10bps
• 4-year fixed rates by 10bps

Heritage and People’s Choice is also passing on the benefits to savers, with several term deposit products providing greater returns:

• 6 months – increase by 15bps to 5.00%
• 9 months – increase by 70bps to 4.85%
• 12 months – decrease by 25bps to 4.75%

“Of course, we’re very aware of the financial pressure being felt by many Australians due to cost of living increases, so we’re very pleased to be able to offer some relief through these changes which will benefit both borrowers and depositors,” said Maria-Ann Camilleri, Chief Member Officer at Heritage and People’s Choice.

All home loan and business loan changes will be effective from 8 February 2024. Some reductions are dependent on loan-to-value ratio. All term deposit changes will be effective from 7 February 2024.

Full details of all changes are available on the Heritage Bank and People’s Choice websites.

People First Bank

Heritage and People’s Choice will soon begin trading under its new name – People First Bank – with the first brand elements to be introduced in March.

Media enquiries

Andrew Fox
0419 714 204 | heritage.news@heritage.com.au

Jonathan Revitt
0412 639 179 | jrevitt@peopleschoice.com.au

FAQs

More home loan FAQs

  • How will I be notified if my interest rate is changing?

    • If you make Principal and Interest repayments, you’ll receive a letter from us with your new rate and repayment information, providing you with at least 20 days' notice for you to make any changes.
    • If you make Interest Only repayments, you’ll receive a letter from us with your new rate.
    • If you have a Line of Credit account, you’ll receive a notification of the rate change on your next statement.

  • Can I switch to a fixed interest rate?

    If you want to speak to us about fixing your home loan interest rate, email us on fixmyhomeloan@peopleschoice.com.au with your name, member number and contact phone number and we’ll be in touch within 48 hours to talk through your options.

Help and support

If you need any support managing your home loan, we’re here to help.

If you're ahead with your loan repayments, you might be able to redraw against your loan. For terms and conditions that apply to redraws, please see our lending terms and conditions (PDF, 249 KB).

Members experiencing financial difficulty at any time can find information about the support we provide on our Financial Hardship Assistance page.

Please visit our Managing debt and financial hardship section for tips on  budgeting, planning and debt consolidation.

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