Heritage Bank Discount Variable Home Loan

Rates and Fees verified correct on October 22nd, 2016

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.

Interest Rate Max Insured LVR Max LVR
Discount Variable (Investors)
4.74% p.a.
Comparison Rate
4.75% p.a.
95% 80%
Discount Variable Rate (Owner Occupier)
4.49% p.a.
Comparison Rate
4.50% p.a.
95% 80%
Special Rate (Investors)
4.09% p.a.
Comparison Rate
4.10% p.a.
95% 80%
Special Rate Offer (Owner Occupier)
3.79% p.a.
Comparison Rate
3.80% p.a.
95% 80%
Product NameHeritage Bank Discount Variable Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$150,000
Minimum Loan Term1 year
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityYes
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$600
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$0 p.a.
Settlement Fee$0
Discharge Fee$0


  • 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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This page was last modified on 10 July 2015 at 11:38.

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6 Responses to Heritage Bank Discount Variable Home Loan

  1. Default Gravatar
    Lynette | April 12, 2016

    We are first time buyer and would like help on where to begin and best options to look at. We do have a property we are looking at buying, hopefully within the next week or so. We do have a 10% deposit.

  2. Default Gravatar
    sev89 | May 29, 2015

    hi, I am a low income earner as I am on call casual and have been working for this company for about 9 months now with roughly 24-30 hours a week as well as receiving a income support benefit if I don’t meet my required hours. My father is having trouble paying of his mortgage and is now looking to sell. I currently live in his house and have been paying $275 weekly as well as taken up ownership of all the household bills. my father would like to sell me the house for what he owes the bank which is roughly $250,000. my question is would I be eligible to do this and also claim the new home buyers grant. I have never enquired about this before and would just like a push in the right direction

    thank you for your help

    • Staff
      Belinda | June 1, 2015

      Hi Shaine,

      Thanks for your enquiry.

      finder.com.au is an online comparison service, so we cannot provide you with financial advice regarding this situation.

      To be eligible for the First Home Owners Grant (FHOG) you must meet a range of criteria, which can be found on your local Office of State Revenue website.


  3. Default Gravatar
    Paul | May 15, 2015

    Can I borrow say $2,000,000 on interest only at age 57 with annual income $360,000.
    What would the stamp duty be on $2.1m.
    What would the mortgage insurance be on 95% loan.

    • Staff
      Marc | May 18, 2015

      Hi Paul,
      thanks for the question.

      Unfortunately as we’re not Heritage Bank, but rather a comparison service, I’m unable to say for sure whether or not they would approve you for a loan of that amount. I would recommend you give them a call and enquire about the chances of approval.

      For estimates on how much stamp duty you’d pay you can use our stamp duty calculator.

      I’ve emailed you a link to the Genworth LMI Premium Estimator for more information on how much mortgage insurance would be.


Heritage Bank Discount Variable Home Loan

  • Interest Rate


  • Comparison Rate


  • App Fee / Annual Service Fee

    $600 / $0

  • Max LVR


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