Heritage Bank fixed rate home loan

Penalty-free additional repayments and unchanged interest rates during the set period mean you're rest assured during the fixed period of your loan.

Heritage Bank's fixed-rate home loans can give you peace of mind with fixed interest rates and the option to settle with lump-sum or additional repayments without the risk of a penalty.

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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

Heritage Bank offers borrowers an unchanged interest rate for a term of between one to five-year loan periods. If the loan is repaid before the end of the fixed term, borrowers are liable to pay a break fee (non-applicable in the case of the basic, discount and standard-variable home loan options).

This fixed rate loan could be ideal for tentative first-time home buyers because it eliminates the risks that come with fluctuating interest rates. The bank's standard variable rate applies once the fixed-term period expires.

About this loan

Features of the Heritage Bank fixed-rate home loan

  • Loan amount. Heritage Bank home loans start at a minimum of $20,000 and go up to a maximum of N/A with a loan term of up to 30 years.
  • Maximum loan-to-value ratio (LVR). Maximum LVR is set at 95% for this loan, enabling borrowers to invest in a purchase even with a small deposit (less than 20% of the purchase price). The same LVR applies to the discount, basic and standard-variable options. You should note that you will have to pay Lender's Mortgage Insurance (LMI) if you borrow with an LVR above 80%.
  • Partial offset account. Fixed-rate home-loan borrowers can benefit from a partial offset account. This all the features of a regular transaction account while assisting in repaying the loan quicker and with less interest. This service is provided without a monthly fee and comes with a number of add-ons like free internet and mobile banking.
  • Repayment and redraw facilities. Borrowers can choose between weekly, fortnightly and monthly payments. Additional and lump-sum payments can be made without risking penalties. A redraw facility allows access to additional repayments accumulated over time.
  • Refix at no cost. Once the fixed term of a loan ends, borrowers can start another fixed-rate cycle at no extra cost.
  • Construction loans. Heritage Bank grants construction loans with this fixed-rate option.

What fees and charges come with this loan?

  • Application/establishment fee: $600. This fee is charged to cover the cost of arranging the loan. This includes creating files, putting together interviews and processing documents. In cases where additional products are offered as part of a package deal, this fee may be discounted by as much as $200.
  • Ongoing fee: $8 per month. All home-loan options are subject to this fee.
  • Rate guarantee fee: This is non-refundable and amounts to 0.12% p.a. of the total borrowed. This fee fixes the interest rate for the duration of the loan's fixed term.

How to apply

If you would like to apply for a home loan from Heritage Bank, please speak to a mortgage broker or speak to Heritage Bank directly.

To meet the criteria, home-loan applicants who aren't already Heritage Bank customers have to be permanent residents in Australia. A Heritage Bank home-loans specialist will provide assistance.

Whether applying online, in person at the nearest office or by post, getting all the necessary documentation in order is the first step to ensuring a smooth application process. Essential documents include:

  • Savings history for the last three months
  • Personal identification (driver's licence, national ID card, passport)
  • Proof of income and financial statements

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