Heritage Bank third lender to pass on full RBA rate cut

As the major banks continue to hold off on making interest rate decisions, Heritage Bank has joined Bank of Queensland and ME Bank by passing on the full 25-basis-point rate cut to its borrowers.

Heritage’s discount variable mortgage rate will now drop to 6.35% from 6.6% and the standard variable mortgage rate will drop to 6.94%, down from 7.19%. The reductions will be effective from December 16.

CEO John Minz says passing on the full interest rate reduction is the right thing to do by its members.

“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.”

Minz says the rate cut was a concrete demonstration that the change of name to Heritage Bank last week (from Heritage Building Society) 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 says.

“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.”