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.
| 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 LVR | 80% |
| Maximum Insured LVR | 95% |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & 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 |
Pros
- Competitive interest rate
- Unlimited redraws
- No monthly fees
- Application fee of $600 is currently being waived for new borrowers
Cons
- No offset account
Details to consider about the Heritage Bank Discount Variable Home Loan
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.
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.
- 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.
Fees
- 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.
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.
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.
Hi Lynette,
thanks for the question.
One good option is to read our first home buyer guide here. We also have some tips that may be helpful to you on this page.
When searching for a loan as a first time buyer, it’s a good idea to compare what’s out there and consult lenders, or alternatively, if you need some help in the process of finding and applying for a loan, consider consulting a mortgage broker. A broker will help you find the right loan and then submit the paperwork, and usually takes a commission from the lender you opt to go with rather than charging a fee.
I hope this helps,
Marc.
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
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
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.
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.