ME Bank and Heritage Bank pass on rate cut in full

Mutual lenders ME Bank and Heritage Bank have announced they will pass on the RBA's 25 basis point rate cut in full to their mortgage holders. 

ME Bank's standard variable rate drops from 5.63% p.a. to 5.38% p.a on August 23.

The rate cut ensures members of eligible super funds and unions will have access to mortgage rates currently more than 50 basis points lower than that of the nearest major bank.

Heritage’s standard variable interest rate will be reduced to 5.64% from August 16.

Heritage chief executive John Minz said passing on the 0.25 percentage point cut maintained Heritage’s competitive advantage against the big banks. 

“In the current economic circumstances, cutting our rates is the right thing to do, both for our mortgage customers and for the economy as a whole..

“With the Federal election date now set and with interest rates at these record lows, the ingredients are there for a surge in economic activity in coming months, which will benefit the whole country.

“As a customer-owned bank, we always strive to provide the most competitive interest rates we can," he says.