Heritage Bank has decreased its three-year fixed home loan interest rate by 10 basis points to 4.89% (comparison rate 5.54%).

The loan type includes owner occupied, investment and vacant land.

Your Mortgage’s home loan calculator shows the reduction will save customers about $17 a month for a loan of $300,000 on a loan term of 20 years, compared to the previous rate.

The new rate is effective from Friday, 20 September.