A loan option for borrowers wanting basic features and discounted interest rates
If you’re looking for a home loan with competitive rates and flexible features you might want to consider the Heritage Bank Discount Variable Home Loan. This home loan is designed for borrowers who are simply looking for a basic loan that gives them access to a range of competitive features.
This loan gives you a variable home loan rate with the option of making interest-only payments or principal and interest payments, depending on your needs. There’s the possibility of getting an advance on your loan and a redraw facility is also available.
Special Rate offer
For a limited time Heritage Bank is offering a special rate lower than the regular Discount Variable Rate. This is offered for a limited time on new loans over $150K.
|Product Name||Heritage Bank Discount Variable Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$150,000|
|Minimum Loan Term||1 year|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$0 p.a.|
- Competitive interest rate
- Unlimited redraws
- No monthly fees
- Application fee of $600
Things to consider about the Heritage Bank Discount Variable Home Loan
There are a lot of considerations to bear in mind with this home loan. This is a variable rate loan, meaning the interest rate may fluctuate during the loan term. You do have the flexibility to repay your loan by making interest-only repayments, or with principal and interest repayments.
The loan gives further advances when required and there are a lot of fees that you can avoid such as monthly administration fees.
Features of the Heritage Bank Discount Variable Home Loan
- Minimum amount. You must borrow at least $150,000 when taking out this loan.
- Interest-only option. You can make interest-only repayments on this loan for as many as five years. This will reduce your loan repayment amount, but won’t see any of your principal paid off.
- Repayment options. Borrowers have flexible repayment options with Heritage Bank as you can choose to make principal and interest or interest-only repayments. You can also make lump sum repayments or simply pay your loan back ahead of your term without facing penalties.
- Reborrowing facility. You can get access to payments you’ve made in advance with the Discount Variable Home Loan. There are fees involved with these transactions.
- Split loan options. You can split this loan into fixed and variable rates, giving you some of the benefit of both types of rates.
Fees you can avoid
- First valuation fee. You don't have to pay for the first valuation of your property, as Heritage Bank will cover the cost up to a value of $330. If the valuation cost exceeds this amount, you will be required to cover the extra amount.
- Early repayment / lump sum fees. You can make additional repayments on your loan to pay it off faster or contribute lump sum payments without paying a penalty fee.
- Monthly administration fee. You can avoid monthly administration fees with this home loan.
- Lender’s Mortgage Insurance (LMI). LMI is avoidable if you take out a home loan with a Loan-to-Value Ratio (LVR) of less than 80%.
Fees you can’t avoid
- Reborrow fee. You will be charged $20 for re-borrowing on this loan.
- Application fee. Heritage Bank will charge you $600 to apply for this loan.
Estimate your repayments by filling in some of your details
How to apply for the Heritage Bank Discount Variable Home Loan
In order to be eligible for this loan, you need to be:
- 18 years old: You must be at least 18 years old and you will be required to produce proof of age when applying for the loan.
- An Australian resident: You have to be a permanent Australian resident to qualify for this loan.
With regards to your financial information, the bank will require:
- Your savings history: Your savings account statements and other documents may be required.
- Proof of income: If employed, you will need to provide your employment/salary letter, gross basic wage and tax returns. For self-employed borrowers, you will need to produce personal tax returns, financial statements for the past two years and a recent assessment notice. Other documents may be required.
The Heritage Bank Discount Variable Home Loan is an option for borrowers who want competitive rates and flexible features. You can compare the loan options available with other home loan providers to get the best deal.
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Heritage Bank Discount Variable Home Loan Interest Rate History vs RBA Cash Rate Graph
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