Heritage Bank to cut standard variable home loan rate by full 0.25%
Heritage Bank announced today it will pass on the full 0.25% cut for standard variable home loan borrowers, following the Reserve Bank of Australia’s decision yesterday to reduce the official cash rate.
Heritage’s standard variable interest rate will be reduced to 5.89%.
That will save a typical Heritage standard variable mortgage holder close to $50 a month on their repayments (based on a $250,000 loan taken out over 25 years).
CEO Mr John Minz said the 0.25% cut maintained Heritage’s competitive advantage against the big banks and delivered on its People first philosophy.
"As a customer-owned bank, we always strive to provide the most competitive interest rates we can,” he said.
“We’re proud that our rates are among the best in the marketplace. Following this reduction, our standard variable home loan rate of 5.89% will be 0.28% lower than the average of the big four bank, which will all have rates above 6%.
“We exist to give our customers the best value possible, not to make profits for shareholders, and this is reflected in our home loan interest rates.”
The rate change will come into effect from Thursday, 16 May.