Heritage Bank moves quickly to pass on full rates cut

HERITAGE Bank has moved quickly to announce that it will cut the full 0.25% from its standard variable home loan rate, following the Reserve Bank of Australia's decision to reduce the official cash rate.

Heritage's standard variable interest rate will be reduced to 5.64 per cent.

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 passing on the 0.25 per cent cut maintained Heritage's competitive advantage against the big banks and delivered on its People first philosophy.

"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," Mr Minz said.

"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.

"Today we have taken the decisive step to move quickly on rates to benefit our customers."  

The rate change will come into effect from August 16.