Heritage Bank to reduce home loan interest rates by 0.20%
Heritage Bank announced today it will cut home loan interest rates by 0.20%, in the wake of the Reserve Bank of Australia’s decision this month to reduce the official cash rate.
Heritage’s standard variable interest rate will be reduced to 6.34%.
CEO Mr. John Minz said the 0.20% reduction meant Heritage’s fully featured standard variable home loan remained extremely competitive.
“As a customer-owned bank, we always strive to provide the most competitive interest rates we can. We’re proud that our rates are among the best in the marketplace. Our discount variable home loan will now have a rate of 5.64% making it one of the most attractive discount home loans available on the market” Mr. Minz said.
”Unlike the big banks, we don’t have to make bigger profits to pay dividends to shareholders, so we can keep our rates lower.
“However, we have to balance that goal against the higher costs of funding and the need to meet long-term capital and liquidity requirements.
“Our decision to cut variable home loan rates by 0.20% provides the best overall outcome for our borrowers and for the organisation’s future.”
The reduction to interest rates will be effective from Tuesday, 16 October.