Why it matters: Heritage Bank says that the mortgage wars are about to heat up again.
While good for consumers, it presents a challenge for banks nursing wounded margins.
Heritage, which has merged with People’s Choice, posted a profit of $32.1m.
Heritage Bank chief executive Peter Lock says “the mortgage wars are not over” and is bracing for a fresh competitive push from Commonwealth Bank after its market share declined in July and August.
Mr Lock, who runs the nation’s largest customer-owned bank, said a fresh round of competition would be extremely challenging for lenders because they were only just recovering from the last round of low-ball mortgage offers, highlighted by unprofitable cashback deals to lure refinancing borrowers.
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Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com
