Heritage Bank to reduce home loan interest rates by 0.30%
Heritage Bank will cut its home loan interest rates by 0.30%, taking its standard variable rate to 6.74% effective from Friday, 11 May.
The move follows the Reserve Bank of Australia's decision this week to reduce the official cash rate.
Heritage's standard variable interest rate will continue being well below the big banks, to now sit 0.29% below the average rate of the three majors that have announced reductions this week.
Also, Heritage's discount variable home loan rate will be cut to 5.99%, making it one of the best rates in the country.
Heritage CEO John Minz said the 0.30% reduction achieved the right balance.
"At Heritage, we always strive to provide our customers with the most competitive interest rates we can. We're proud that our rates are among the best in the marketplace," Mr Minz said.
"However, we have to balance that goal against the increasing costs we are paying to source funding these days.
"Our decision to cut rates by 0.30% provides the right balance between giving our borrowers a financial boost and protecting Heritage's long-term strength."