Heritage Bank passes on full RBA interest rate cut

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.”

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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