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Heritage Bank Discount Variable Home Loan

Marc Terrano
Marc Terrano
Last updated:  

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.

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Expert review

Marc Terrano

Review by

Marc 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.

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4 Comments

    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

    Reply
      Avatarfinder Customer Care
      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.

      Thanks,
      Belinda

      Reply
    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.

    Reply
      Avatarfinder Customer Care
      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.

      Cheers,
      Marc.

      Reply
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