Heritage Bank announced today it will reduce the interest rate on its variable rate home loans and business banking loans by 0.20%, following the Reserve Bank of Australia’s decision this week to reduce the official cash rate.
CEO Mr John Minz said the 0.20% cut maintained Heritage’s competitive advantage against the big banks and took into account the interests of depositors as well as borrowers.
Heritage’s Standard Variable rate will drop to 5.19%% - well below all of the big four banks.
Mr Minz said in making this decision, Heritage had to consider what was best not just for borrowers but for other customers as well.
“We are in an environment of record low-interest rates, with borrowers benefitting from continued cuts that have reduced rates to levels never seen before,” Mr Minz said
“Heritage continues to offer home loan interest rates that remain lower than all four of the major banks in Australia.
“We believe we offer fantastic value to our home loan customers.
“However in this record low-interest environment, the Reserve Banks official cash rate is just one factor we consider when we look at interest rates as we must also balance the interests of borrowers against the needs of people who have their savings invested with Heritage and rely on that for their income.
“That’s why we also continue to offer some Term Deposit rates at 3% and above.
“Our decision to cut home loan interest rates by 0.20% represents a fair balance between the best interests of our customers overall.”
The rate change will come into effect from Monday, 18 May.
More information: Andrew Fox, Manager Corporate Communications, 0419 714 204