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