Heritage Bank Discount Variable Home Loan

Rates and fees last updated on

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.

Interest Rate Max Insured LVR Max LVR
(Investors) New Customers Only
5.14% p.a.
Comparison Rate
5.15% p.a.
80% 80%
(Owner Occupier) New Customers Only
4.59% p.a.
Comparison Rate
4.61% p.a.
95% 80%
Discount Variable (Investors) Existing customers only
5.14% p.a.
Comparison Rate
5.20% p.a.
80% 80%
LVR <=80% (Investors, IO) New Customers Only
5.14% p.a.
Comparison Rate
5.15% p.a.
80% 80%
LVR <=80% (Investors, P&I) New Customers Only
4.49% p.a.
Comparison Rate
4.51% p.a.
80% 80%
LVR <=80% (Owner Occupier) New Customers Only
3.97% p.a.
Comparison Rate
3.99% p.a.
90% 80%
LVR <=90% (Owner Occupier, P&I) New Customers only
4.07% p.a.
Comparison Rate
4.09% p.a.
90% 80%
LVR <=95% (Owner Occupier, P&I) New Customers only
4.17% p.a.
Comparison Rate
4.19% 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$0
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 $0 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 $0.
  • 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.

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This page was last modified on 26 May 2017 at 2:35pm.

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6 Responses

  1. Default Gravatar
    LynetteApril 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
    sev89May 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
      BelindaJune 1, 2015Staff

      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

  3. Default Gravatar
    PaulMay 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
      MarcMay 18, 2015Staff

      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.

Heritage Bank Discount Variable Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR

    80%

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