The Heritage Bank Discount Special Rate Loan comes with different rate tiers depending on your LVR. If you're borrowing less than 80% of the property's value, your rate will be a low 3.97%, borrowing less than 90% of the value and you'll score a rate of 4.07% and finally, if you're borrowing 90%-95% of the property' value, you're rate will be 4.17%.
You don't have to stress about repayment timings, Heritage Bank gives you the option of choosing the repayment frequency that best suits you. Options include weekly, fortnight or monthly repayments.
There's no offset account on offer but you can make extra repayments at anytime for free which will help you to reduce the time it takes to pay off your loan and save on interest. The loan also has unlimited redraws so if you need to you can access those funds later down the track. And with no ongoing fees, all of your repayments will go towards paying back your loan not expensive bank fees.
Who it's good for:
People who want a loan with flexibility and great value, particularly those with a 20% or more deposit. Why pay more in interest than you absolutely need to?
While the loan is available for up to a 95% LVR, just be mindful that for loans over 80% loan-to-value-ratio, you'll get a steeper interest rate and be required to pay Lenders Mortgage Insurance. This insurance isn't unique to Heritage Bank, it applies to all loans with LVRs more than 80%.