Heritage Bank will cut its home loan variable interest rate by the full 0.25% announced by the Reserve Bank of Australia yesterday.
CEO John Minz said passing on the full interest rate reduction was the right thing to do by its members at this time.
Mr Minz said the cut to the home loan interest rate reinforced Heritage’s rock-solid commitment to its People first philosophy.
“With Christmas just around the corner, many of our members are facing added expenses. Passing on the full RBA cut on our variable home loan rates will help make their festive season just that little bit less stressful.”
Heritage’s discount variable mortgage rate will now drop to 6.35% from 6.60% and the standard variable mortgage rate will drop to 6.94%, down from 7.19%. The reductions will be effective from 16 December.
Mr Minz said the rate cut was a concrete demonstration that the change of name to Heritage Bank last week had not changed Heritage’s focus on the interests of members.
“We remain absolutely committed to ensuring we deliver the best value possible to members,” he said.
“At Heritage, we’re not about generating the biggest profits we can. We’re all about the best interests of our members and the communities in which they live.”