Heritage Bank Fixed Rate Home Loan

Rates and Fees verified correct on December 9th, 2016

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.

Coupled with an extended period of rate stability and a recent increase in home-loan approvals in Australia, this could make it a favourable climate in which to consider a property investment.

Heritage Bank also offers discount, basic and standard-variable options for home loans. Borrowers can even switch from one to another (except to the discount variable option).

Interest Rate Max Insured LVR Max LVR
1 Year Fixed Rate (Owner Occupier)
4.09% p.a.
Comparison Rate
5.06% p.a.
95% 80%
1 Year Fixed (Investors)
4.39% p.a.
Comparison Rate
5.31% p.a.
95% 80%
2 Year Fixed Rate (Owner Occupier)
3.84% p.a.
Comparison Rate
4.92% p.a.
95% 80%
2 Year Fixed (Investors)
3.99% p.a.
Comparison Rate
5.15% p.a.
95% 80%
3 Year Fixed Rate (Owner Occupier)
3.99% p.a.
Comparison Rate
4.87% p.a.
95% 80%
3 Year Fixed (Investors)
4.09% p.a.
Comparison Rate
5.07% p.a.
95% 80%
5 Year Fixed Rate (Owner Occupier)
4.49% p.a.
Comparison Rate
4.92% p.a.
95% 80%
5 Year Fixed (Investors)
4.59% p.a.
Comparison Rate
5.10% p.a.
95% 80%
Product NameHeritage Bank Fixed Rate Home Loan
Interest Rate TypeFixed
Comp Rate^ (p.a.)
Minimum Loan Amount$20,000
Minimum Loan Term1 year
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionYes
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$5 monthly ($60 p.a.)
Settlement Fee$0
Discharge Fee$0

Pros

  • No legal fee, valuation fee and discharge fee.
  • You can make extra payments at any time and withdraw the funds using the free redraw facility.

Cons

  • There is $5 per month account fee.
  • $600 application fee.

Things to consider about Heritage Bank’s fixed-rate home loan

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.

Features of the Heritage Bank fixed-rate home loan

  • Loan amount. Heritage Bank home loans start at a minimum of and go up to a maximum of with a loan term of up to years.
  • Maximum loan-to-value ratio (LVR). Maximum LVR is set at 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 .
  • 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.

Fees

Fees you can avoid

  • Break fee: This fee is levied if the loan is paid back before the end of the fixed period.
  • Lender's mortgage insurance (LMI): LMI will not be charged when the borrower's deposit covers 20% or more of the purchase price.
  • Redraw fees: If borrowers choose to use the redraw facility during the fixed term, a fee of $20 applies (varies from state to state).

Fees you can’t avoid

  • 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.
  • On-going fee: $5 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.
  • Valuation fee: Heritage Bank will charge valuation fees up to $330 where only one valuation is required. Any further valuations requested during the loan's fixed term will be charged in full to the borrower.

Calculate your repayments by filling in some of your details

How to apply for the Heritage Bank fixed-rate home loan

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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Heritage Bank Fixed Rate Home Loan Interest Rate History vs RBA Cash Rate Graph


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This page was last modified on 28 August 2015 at 15:29.

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Heritage Bank Fixed Rate Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $600 / $5

  • Max LVR

    80%

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