Heritage Bank Home Loans

Heritage Bank Home Loans

Scroll Down

Everything you need to know about a Heritage Bank Home Loan

A Queensland-based community bank, Heritage offers fair deals to customers as the profits are returned to the customer in the form of lower fees and better interest rates. With a focus on putting People first, they have a solid customer service track record and noteworthy financial hardship policies to help borrowers. Heritage Bank is the largest customer-owned bank in Australia.

Key Benefits

  • Reliable customer service
  • Very competitive rates
  • Variety of home loan options


  • Branch access limited to Queensland
  • LMI provider may decline if borrowing over 80
  • Conservative lending policy

Compare Home Loans

Business building ceiling

Heritage Bank Home Loan Products Breakdown

Discount Variable

  • Flexible repayments
  • Redraw online
  • Unlimited repayments

A low discounted home loan that allows you to pay your loan faster

For an affordable home loan, Heritage Bank offers a low rate variable loan product with no monthly service fees and one of the lowest rates in the country. While their Discount Variable loan doesn’t include an offset account, you can still pay down your loan faster with unlimited extra repayments. And, when you need to, you can access your additional payments with unlimited redraw. As with all of the home loan products from Heritage Bank, you have the option to take advantage of an interest only repayment period to give you more flexibility in the first few years of your loan.

Standard Variable

  • Redraw online
  • Flexible repayments
  • 100% offset

An easy repayment option to pay off your loan sooner

If you plan on making more than the minimum monthly repayments, then the Standard Variable home loan is a smart option. You will still enjoy a competitive interest rate as well as features that will let you pay down your mortgage as quickly as you’d like, including a 100% offset account to reduce the amount you’d have to pay in interest overall. You can still make unlimited repayments and will have a redraw facility.

Fixed Rate

  • Unlimited repayments
  • Online redraw
  • Interest only option

Enjoy the comfort of knowing exactly what your monthly repayments will be

With Heritage Bank, you’ll enjoy the peace of mind that comes from a stable fixed interest rate, as well as all the features that put you in control of your loan, that most banks only offer through their variable rate loans. Take advantage of redraw, unlimited additional repayments, and a partial offset account. You can get a fixed loan for purchase or construction and refix your loan at the end of your term at no cost.

Living Equity

  • Line of credit
  • Flexible repayments
  • Interest only option

Invest in your future today with this ongoing line of credit

Heritage Bank has a full-featured line of credit loan with a competitive rate. If you want to use your build up equity to help you meet your financial goals either now, or down the road, you’ll have the freedom to borrow more to invest or simply to pay for life’s big events like a child’s education. It can serve as a general line of credit at your low mortgage rate. You can access your funds conveniently through your debit or credit card, online, by phone, BPAY, or at any Heritage Bank branch location.

Bridging Loan

  • Standard 6 month term
  • No monthly fees
  • Payment after end of term

A short-term loan to bridge the finance gap between selling and buying a home

While it would be perfect if you sold your existing home in time to purchase your new dream home, this doesn’t always happen. That’s why Heritage Bank offers a competitive Bridging Loan to customers. This short term loan will allow you to purchase your new property so you can move in now. That way, you don’t have to worry about getting your current home sold right away. Loan terms range from six months to one year.

Home Advantage Package

  • $0 application fee
  • Discount on insurance
  • 100% offset

Package your accounts together and save more

Heritage Bank will let you package your standard variable, fixed rate, or living equity loan with a fee-free credit card and transaction account for an annual package fee. You’ll also enjoy discounts on insurance, $0 application fees if you decide to take out a personal loan, and all the great features of their suite of loans like free redraw.

Heritage Bank Home Loan Products Comparison


Looking for your perfect match?

At eChoice, we have partnered with over 20 of Australia's leading lenders to help you find the right home loan. Chat with one of our experienced brokers today.

Estimated Refinancing Savings

Potential Lender Options

Competitive Interest Rates

Estimated Borrowing Power

Estimated Monthly Loan Repayments

Compare Home Loans


Frequently Asked Questions

What is an offset account?

An offset account is similar to a savings or everyday bank account except it is linked to your home loan account and works to ‘offset’ your mortgage balance, allowing you to only pay interest on the difference between your principal loan and the balance in your offset account.

What is Variable Rate?

A variable rate home loan is one where the interest rate is open to the fluctuations of the market or lender. This means your home loan will likely be affected if there is a rate rise or drop.

What is Fixed Rate?

A fixed rate home loan is one where the interest rate is locked-down or fixed for a specified period of time, meaning it can’t change.

What is a Bridging Loan?

A bridging loan can help you to get the finance you need to buy a new property before your current property has sold.

What is a Line of Credit?

A line of credit allows you to borrow in small increments, rather than the total amount at once. This can help you to avoid accruing a large amount of interest by taking out the full loan.

How do I redraw from my home loan for Heritage Bank?

If you’ve paid off the minimum amount on your home loan through advance payments, you are eligible for a redraw through Heritage Bank. This means you will be able to withdraw the extra money you’ve paid, which you can use for any purpose while continuing to pay off your loan. There are two ways you can withdraw from your home loan through Heritage Bank.

The first is by filling out an Application to Redraw Payments in Advance form. You can access this form through Heritage Bank’s website, or contact them to ask for a copy.

You can also apply online through internet banking or Heritage’s Mobile Banking App. However, you will need to already be registered for internet banking to do so, and will need to fill out a Redraw authority form. Once you have done this, you will be able to withdraw money from your redraw facility through online banking at any time — just like you would with any other account. To do this, you simply select the eligible loan account you want to withdraw from, the required amount and the account you want to transfer money to. You can only transfer to a Heritage Bank or other Australian bank account, not BPAY or any international accounts. Your standard Heritage Bank maximum withdrawal limits will also apply.

What is Heritage Bank’s discharge fee?

Like most banks, Heritage Bank charges a discharge fee (otherwise known as a termination or settlement fee) when you finish paying off your loan or refinance with another lender. For their fixed rate home loans, Heritage Bank’s discharge fee is $250.

You may also need to pay a break fee if you pay out and close the loan or switch to another loan type within the fixed loan period. You usually need to pay this when current interest rates are lower than your fixed rate. Heritage Bank calculates this fee by comparing the amount of interest that will be lost due to the fixed term being broken and the projected interest that can be recuperated by re-lending those funds at the current interest rate. Heritage Bank will inform you of any break fees that will apply in your credit contract, payout letter or switch disclosure.

How do I apply for an Heritage Bank mortgage?

There are various steps involved in applying for a Heritage Bank mortgage.

  1. The process generally begins with having a meeting with your mortgage broker, who will be able to determine your lending power and talk you through the various available home loan options
  2. Once you’ve selected the right product for you, your broker can help you fill out the Home Loan application form on Heritage Bank’s website and you will need to sign and submit any relevant forms. A property valuation may also be ordered if necessary
  3. Once all necessary documentation has been submitted, Heritage Bank will carry out a loan assessment to determine your suitability. This is where they determine your ability to repay the loan
  4. If your application is successful, you will then be quickly notified of any conditions that apply — for example, if your approval depends on the satisfactory valuation of the property.
  5. At this point, loan documents are prepared by Heritage Bank’s credit team and you will be contacted when they’re ready to collect from your local brand. If you live interstate, these will be sent to you via mail and you will need to post them back once signed. These will need to be signed by all borrowers and you may need to have some witnessed by a qualified witness such as a Justice of The Peace.
  6. Once the documents have been received by Heritage Bank’s credit department, they will check that they’ve been correctly filled out, signed and witnessed. They will also communicate with your solicitor or conveyancer to collect any other documents needed for settlement
  7. If all goes smoothly, you’ll be on your way to settlement!