Heritage Bank home loans

Heritage Bank
Heritage Bank's overall rating for home loans

(as rated by the Mozo community)

8.4 / 10

based on 78 reviews

Heritage Bank is Australia’s largest customer-owned bank, which means profits go straight back to members in the form of lower interest rates and fees. With no shareholders to please, Heritage Bank also gives back to the local community through grants to community organisations. If you’re looking for a home loan provider offering a touch of personal service, competitive pricing and flexible features, Heritage Bank may be the right fit.

This year, Heritage Bank also bagged two 2016 Mozo Experts Choice Awards, for Best Value Home Loan Package and Best Value First Home Loan. So whether you’re a seasoned property investor, first-home buyer or just looking to refinance, Heritage Bank has a range of loans on offer to suit your needs.

Top 5 home loans 2015

Rates and fees verified as correct at 04 December, 2016. Other information correct at the time of writing.

What home loans do Heritage Bank offer?

Fixed Rate Home Loans Fixed Rate Home Loans

If you prefer the certainty of fixed rate home loans, Heritage Bank offers one, two, three and five-year fixed terms, with a full range of features. If you’ve got some spare cash, you can make extra repayments and dip into this later thanks to the redraw facility. This might be a good option particularly as the attached account only offers partial interest offset. At the end of the term, the loan reverts to the Standard Variable Rate, or you may wish to re-fix at no cost.

Home loan repayments calculator
years
Product Fixed 3 year rate Comparison Rate* Service fee Upfront fee Monthly repayments ‡

4.09% p.a.

5.07% p.a.

$5.00 monthly

$700

3.99% p.a.

4.87% p.a.

$5.00 monthly

$700


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Variable Rate Home Loans Variable Rate Home Loans

Heritage Bank offers two stand-alone Home Loans for those who aren’t interested in a package loan. The Standard Variable Rate Home Loan is ideal for those with a smaller loan amount aiming to pay it down in the medium term, as it offers an offset account and the option to make additional repayments without penalties. You can skip repayments if you’re ahead on your loan and can even choose between weekly, fortnightly or monthly repayments.

The Discount Variable Home Loan may be more suitable if you’re borrowing more than $150,000, want the best possible rate and do not require an offset account. You still get the benefit of unlimited extra repayments and unlimited redraw, as well as the ability to vary the frequency of your repayments.

Both loans have an upfront application fee and a redraw fee, but the Standard Variable Rate Home Loan will also set you back a small monthly fee, which the Discount Variable Home Loan does not charge.

Home loan repayments calculator
years
Product Rate Comparison Rate* Service fee Upfront fee Monthly repayments ‡

4.09% p.a.

4.14% p.a.

$0.00

$700

3.79% p.a.

3.84% p.a.

$0.00

$700

5.29% p.a.

5.40% p.a.

$5.00 monthly

$700

5.04% p.a.

5.15% p.a.

$5.00 monthly

$700


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Fixed Package Home Loan Fixed Package Home Loan

The Heritage Bank Home Advantage Package might be the one for you if you’d like to bundle your banking products, although on the fixed rate option, it won’t change your interest rate. There is an annual package fee, but your home loan application fees, monthly loan servicing fees and fee per redraw are waived. There are no account-keeping or annual fees on the attached transaction account and credit card, and you may also be eligible for discounted insurance policies.

As for the loan itself, unrestricted redraw facilities and the option to make additional or lump-sum payments are on offer.

Home loan repayments calculator
years
Product Fixed 3 year rate Comparison Rate* Service fee Upfront fee Monthly repayments ‡

4.09% p.a.

4.66% p.a.

$350.00 yearly

$100

4.09% p.a.

4.59% p.a.

$350.00 yearly

$100

4.09% p.a.

4.56% p.a.

$350.00 yearly

$100

3.99% p.a.

4.27% p.a.

$350.00 yearly

$100

3.99% p.a.

4.24% p.a.

$350.00 yearly

$100

3.99% p.a.

4.21% p.a.

$350.00 yearly

$100


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Variable Package Home Loan Variable Package Home Loan

If you’re opting for either the standard variable or line of credit rate options of the Home Advantage Package from Heritage Bank, you can bundle your home loan with a transaction account and credit card for a discount. The variable rate option comes with all the benefits of the fixed rate alternative, but also includes a 100% offset account to help you clear your home loan debt as soon as possible. Or, if your monthly budget is stretching thin, you can opt for and interest only repayment option for up to five years.

Home loan repayments calculator
years
Product Rate Comparison Rate* Service fee Upfront fee Monthly repayments ‡

4.39% p.a.

4.74% p.a.

$350.00 yearly

$100

4.29% p.a.

4.64% p.a.

$350.00 yearly

$100

4.24% p.a.

4.59% p.a.

$350.00 yearly

$100

3.88% p.a.

4.24% p.a.

$350.00 yearly

$100

3.84% p.a.

4.20% p.a.

$350.00 yearly

$100

3.79% p.a.

4.15% p.a.

$350.00 yearly

$100


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Line of Credit Line of Credit

Line of Credit

Whether you fancy a facelift to your kitchen or just want to go on holiday, you can use the equity you hold in your home for additional borrowing. Heritage Bank’s Living Equity loan offers loan terms of one to thirty years, with the ability to make unlimited extra repayments. The upfront application fee and monthly loan service fee will set you back, however, you can take advantage of free redraw facilities, as well as interest-only terms up to a maximum of ten years. You can also request a bank card free of charge for unlimited withdrawals at Heritage ATMs, and up to 10 free withdrawals network-wide.

Product Rate Comparison Rate* Service fee Upfront fee

5.11% p.a.

n/a

$8.00 monthly

$700

5.11% p.a.

n/a

$8.00 monthly

$700

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Heritage Bank home loan features in a glance

Additional repaymentsAdditional repayments

All of Heritage Bank’s variable and fixed rate home loans allow you to make unlimited extra repayments without penalty, an important feature which will allow you to pay down your debt faster and avoid making unnecessary interest payments.

100% offset account on the Standard Variable Rate Home Loan or Standard Variable Home Advantage Package100% offset account on the Standard Variable Rate Home Loan or Standard Variable Home Advantage Package

Putting away your monthly savings in an offset account is another great way to reduce the amount of interest you pay on your loan. The total value of the savings in your offset account is deducted from the principal amount owing before interest is calculated, so you could potentially save thousands.

Redraw facilityRedraw facility

In case you find yourself in need of cash at a later date, Heritage Bank’s fixed, variable and line of credit loans all feature a redraw facility.

Ability to split your loanAbility to split your loan

If you want to combine the flexibility of a variable loan with the certainty of fixed repayments, Heritage Bank allows you to split your loan between fixed and variable loans to get the best of both worlds.

Interest only repayment optionInterest only repayment option

Heritage Bank’s fixed and variable loans offer an interest only repayment option up to a maximum of five years, while the Living Equity line of credit loan lets you skip payments on the principal for up to 10 years.

How are Heritage Bank home loans rated?

Curious to find out how others rate Heritage Bank’s service and products? You can read customer reviews here, or even compare home loan providers.

Heritage Bank home loans

Overall 8.4*

Price

Features

Customer service

Convenience

Trust

78 Reviews

* Overall rating based on reviews in the past 12 months.

Recent Heritage Bank home loan reviews Recent Heritage Bank home loan reviews

Heritage Bank

Heritage Bank Standard Variable (Owner Occupier) home loan review

Overall rating   8 / 10

Competitive Rates

Easy to deal with and in my experiences to date great customer service.

Full review

Easy to deal with and in my experiences to date great customer service.

    Price   8 / 10

    Features   5 / 10

    Customer service   8 / 10

    Convenience   8 / 10

    Trust   8 / 10

Less

Dr (QLD), reviewed 8 months ago

Heritage Bank

Heritage Bank home loan review

Overall rating   9 / 10

Customer service is excellent

Pro, customer support and service is excellent. Cons, not that I can think of.

Full review

Pro, customer support and service is excellent. Cons, not that I can think of.

    Price   8 / 10

    Features   9 / 10

    Customer service   10 / 10

    Convenience   7 / 10

    Trust   8 / 10

Less

Deborah (SA), reviewed 8 months ago

Heritage Bank

Heritage Bank Standard Variable (Owner Occupier) home loan review

Overall rating   8 / 10

Great value bank with friendly staff.

Good local branch service. Friendly staff. Low interest rate.

Full review

Good local branch service. Friendly staff. Low interest rate.

    Price   7 / 10

    Features   7 / 10

    Customer service   8 / 10

    Convenience   8 / 10

    Trust   9 / 10

Less

Maurice (QLD), reviewed 8 months ago

Heritage Bank

Heritage Bank Fixed Rate Loan (Owner Occupier) (Home Advantage) home loan review

Overall rating   10 / 10

Excellent FI option.

Service is awesome.

Full review

Service is awesome.

    Price   10 / 10

    Features   10 / 10

    Customer service   10 / 10

    Convenience   10 / 10

    Trust   10 / 10

Less

Amy (QLD), reviewed 8 months ago

Heritage Bank

Heritage Bank home loan review

Overall rating   7 / 10

Low interest rate

I was lucky to get a very good interest rate. Unfortunately it is not available anymore now. Online banking is not very friendly, but I don't mind.

Full review

I was lucky to get a very good interest rate. Unfortunately it is not available anymore now. Online banking is not very friendly, but I don't mind.

    Price   9 / 10

    Features   5 / 10

    Customer service   5 / 10

    Convenience   3 / 10

    Trust   6 / 10

Less

Aximili (VIC), reviewed 11 months ago

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Mozo may receive a payment from financial providers listed on the site. Customer reviews are in no way affected by any commercial relationships Mozo has with providers. Reviewers may receive a voucher from Mozo in exchange for their review. Vouchers are given to all reviewers who meet our review guidelines regardless of the sentiment of their reviews.

* The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years, and applies only to this example. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

‡ Results from this calculation are estimates only as individual lenders apply different formulas. Actual repayments will depend on your individual circumstances and interest rate changes.

Mozo may receive a payment from financial providers listed on the site. Customer reviews are in no way affected by any commercial relationships Mozo has with providers.

What do you need to apply for a Heritage Bank home loan? What do you need to apply for a Heritage Bank home loan?

You can start the application process online, but to complete it you’ll need the following:

  • Copies of statements for your savings accounts held with other banks over the last three months- to demonstrate your savings history.
  • Personal identification- at least two pieces of photo ID (such as your passport and driver’s licence), or one photo ID and your birth certificate/citizenship certificate/utilities account.
  • Proof of income- You’ll need your last two pay slips and last Taxation Assessment Notice. If you receive rental income, Centrelink or maintenance payments, you’ll need proof of this as well.
  • Sale of real estate- If you’ve recently sold your home, you’ll need to produce a copy of the Contract of Sale.
  • Superannuation- If you’ve received a super payout, keep your latest statement handy.
  • Details of existing loans and credit contracts such as credit cards, car loans etc.
  • Other expenses- Details of expenses such as private school fees, maintenance payments etc.

Purchasing?
- Signed copy of Contract of Sale
- Copy of the deposit receipt that shows the full agreed purchase price and balance owing, or a copy of the front page of the signed Contract of Sale
- Copy of registered Strata plan, if applicable

Renovating or constructing?

- Signed copy of fixed price contract
- Copy of building plan and specifications
- Copy of deposit receipt, if applicable

Refinancing?
- Home Loan statements (last six months)
- Latest Council Rates notice
- Latest Water Rates notice

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