Heritage Bank Discount Variable Loan


With no monthly administration fee, and a very low variable rate, the Heritage Bank Discount Variable Loan is very attractively priced and offers some useful features.

You can make unlimited extra repayments to pay down your home loan sooner without any extra charge. The loan is supported by an unrestricted redraw facility with only a small charge for each withdrawal. Repayments can be made either weekly, fortnightly or monthly

You can also split your loan between fixed and variable interest rates. The ratio is up to you. Another available feature is being able to switch to an interest only loan, for a maximum of five years, which may suit investors. There is, however, no offset account.

All this comes of course with a dedicated lending specialist on hand to help.

Who is the Heritage Bank Discount Variable Loan good for?

This Heritage Bank Discount Variable Loan may suit first-time buyers who want to get into the market with a relatively cheap mortgage. It allows some useful features like the ability to split between fixed and variable portions and make unlimited extra payments which can help you to keep interest costs down. The loan may also suit investors keen to build their property portfolio as it allows for interest only repayments.

Review - What RateCity says

With very reasonable rates, low fees and a number of flexible features, Heritage Bank has created a very affordable and accessible home loan which gives you the ability to repay extra on your home loan and save substantially on interest costs. Buyers and investors who have higher equity and surplus cash may be dissuaded by the lack of an offset account which can limit interest savings. In addition, if you need to redraw funds, the cost of these redraws may add up over time. But other features on the loan may offset this disadvantage.

Heritage Bank Discount Variable Loan Options

The Heritage Bank Discount Variable Loan has a maximum period of 30 years and loan top ups are available with a minimum of $10,000.   

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  • Low interest rates.
  • Zero ongoing fees
  • Unlimited extra repayments
  • No offset account
  • Upfront fees

Minimum loan size $150,000. 
Owner occupiers or investors.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
  • Estimated upfront fees: $150 - $750
  • Discharge fees: $200
  • Ongoing fees: $0

The Discount Variable Loan comes with upfront fees, which the bank may waive depending on the size of your loan.

A bonus is that there are no ongoing costs. The bank charges a relatively low discharge fee when your loan period finishes or if you decide to switch to a different lender.

A small redraw fee applies, which may be a sting for those who need to access their home loan funds regularly.

  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Heritage Bank

Heritage is Australia’s largest customer owned bank with branches throughout New South Wales and Queensland. New and existing customers can apply online, otherwise you can head to your nearest branch or call the Heritage Contact centre from Monday to Saturday to set up your loan.

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