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Heritage Bank Discount Variable Home Loan
A loan option for borrowers wanting basic features and discounted interest rates
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Review by
Marc Terrano
marc@finder.com.auMarc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money.
Expert review
The Heritage Bank Discount Variable Loan is available for owner occupiers and investors. It offers flexible repayment options, including the option to make interest-only payments. It offers a redraw facility, but does not come with a 100% offset account.
About this loan
What are the features and benefits 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.
- Redraw facility. You can get access to any extra repayments you've made through the loan's redraw facility. 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.
What fees and charges come with this loan?
- Application fee. The Discount Variable Home Loan comes with an application fee of $600.
- 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.
How to apply
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.
