6 March 2020
Heritage Bank today announced rate cuts across its lending portfolio following the Reserve Bank’s decision this week to reduce the official cash rate.
Effective 25 March 2020, Heritage will reduce all owner occupier and investor variable home loan rates by 20 basis points for new and existing lending. Credit card rates and the standard personal loan variable rate will also be reduced by 25 basis points.
Heritage will also reduce its variable indicator lending rates for business loans by 20 basis points for new and existing lending.
CEO Peter Lock said Heritage’s decision represented a balance between the interests of both borrowers and investors in a challenging financial landscape.
“Our decision was made after fully considering all impacts – but with our customers’ interests always top of mind,” he said.
“A reduction in interest rates is good news for borrowers, but it also impacts depositors, like pensioners and self-funded retirees, some of whom rely on the interest they earn from deposits to fund their living costs."
Mr Lock said it was important to remember that at the RBA cash rate is only one of a number of variables that affect decisions about interest rates.
“Our decision on interest rates represents a balanced approach, with consideration given to the impacts on all of our customers. It’s about maintaining Heritage’s financial strength for our customers now, and into the future.
Mr Lock said Heritage’s interest rates remained competitive across lending and deposits, especially compared to the big banks.
“We pride ourselves on delivering genuine banking experiences and remain absolutely committed to delivering great value overall through our products, rates, and people first service.”