Important disclosure

Heritage Bank home loans
Heritage Bank is a Queensland-based mutual bank that is owned by its customers rather than shareholders.
Heritage Bank offers a wide range of fixed and variable mortgages and charges home loan rates that tend to be below the market average.
Heritage Bank is Australia’s largest mutual bank and has branches throughout Queensland.
Pros
- Variety of home loan products to choose from.
- Package deals available to bundle this loan with other accounts.
- Discounted rates available on some loan products.
- Flexible loan features.
Cons
- Some products have moderate to high loan fees.
- Some loans have moderate to high interest rates.
Owner occupied Heritage Bank home loan rates
Loan type | Principal & Interest rate | Interest Only |
---|---|---|
Bridging Home Loan (Min Deposit 28%) | n/a | Interest Rate 7.04% p.a. Comparison Rate 7.13% p.a. |
Discount Variable (Min Deposit 30%) | Interest Rate 3.65% p.a. Comparison Rate 3.67% p.a. | n/a |
Discount Variable (Min Deposit 20%) | Interest Rate 3.75% p.a. Comparison Rate 3.77% p.a. | n/a |
Discount Variable (Min Deposit 10%) | Interest Rate 4.19% p.a. Comparison Rate 4.21% p.a. | n/a |
Home Advantage Package (Min Deposit 30%) | Interest Rate 4.14% p.a. Comparison Rate 4.52% p.a. | n/a |
Discount Variable (Min Deposit 5%) | Interest Rate 5.69% p.a. Comparison Rate 5.71% p.a. | n/a |
Home Advantage Package (Min Deposit 20%) | Interest Rate 4.24% p.a. Comparison Rate 4.61% p.a. | n/a |
1 Year Home Advantage Package (Min Deposit 5%) | Interest Rate 4.49% p.a. Comparison Rate 4.64% p.a. | n/a |
Home Advantage Package (Min Deposit 10%) | Interest Rate 4.54% p.a. Comparison Rate 4.91% p.a. | n/a |
2 Year Home Advantage Package (Min Deposit 5%) | Interest Rate 4.99% p.a. Comparison Rate 4.75% p.a. | n/a |
3 Year Home Advantage Package (Min Deposit 5%) | Interest Rate 5.19% p.a. Comparison Rate 4.87% p.a. | n/a |
Home Advantage Package (Min Deposit 5%) | Interest Rate 4.74% p.a. Comparison Rate 5.11% p.a. | n/a |
5 Year Home Advantage Package (Min Deposit 5%) | Interest Rate 5.69% p.a. Comparison Rate 5.22% p.a. | n/a |
3 Year Fixed Rate (Min Deposit 5%) | Interest Rate 5.19% p.a. Comparison Rate 6.05% p.a. | n/a |
2 Year Fixed Rate (Min Deposit 5%) | Interest Rate 4.99% p.a. Comparison Rate 6.1% p.a. | n/a |
5 Year Fixed Rate (Min Deposit 5%) | Interest Rate 5.69% p.a. Comparison Rate 6.11% p.a. | n/a |
1 Year Fixed Rate (Min Deposit 5%) | Interest Rate 4.49% p.a. Comparison Rate 6.17% p.a. | n/a |
Standard Variable (Min Deposit 5%) | Interest Rate 6.24% p.a. Comparison Rate 6.35% p.a. | n/a |
Investment purpose Heritage Bank home loan rates
Loan type | Principal & Interest rate | Interest Only |
---|---|---|
Discount Variable (Min Deposit 30%) | Interest Rate 3.88% p.a. Comparison Rate 3.9% p.a. | Interest Rate 4.18% p.a. Comparison Rate 4.2% p.a. |
Discount Variable (Min Deposit 20%) | Interest Rate 3.98% p.a. Comparison Rate 4% p.a. | Interest Rate 4.28% p.a. Comparison Rate 4.3% p.a. |
Discount Variable (Min Deposit 10%) | Interest Rate 4.44% p.a. Comparison Rate 4.46% p.a. | Interest Rate 6.24% p.a. Comparison Rate 6.26% p.a. |
Home Advantage Package (Min Deposit 30%) | Interest Rate 4.34% p.a. Comparison Rate 4.71% p.a. | Interest Rate 4.54% p.a. Comparison Rate 4.87% p.a. |
Home Advantage Package (Min Deposit 20%) | Interest Rate 4.44% p.a. Comparison Rate 4.81% p.a. | Interest Rate 4.64% p.a. Comparison Rate 4.97% p.a. |
1 Year Home Advantage Package (Min Deposit 10%) | Interest Rate 4.69% p.a. Comparison Rate 4.83% p.a. | Interest Rate 4.79% p.a. Comparison Rate 4.99% p.a. |
2 Year Home Advantage Package (Min Deposit 10%) | Interest Rate 5.19% p.a. Comparison Rate 4.95% p.a. | Interest Rate 5.29% p.a. Comparison Rate 5.09% p.a. |
Home Advantage Package (Min Deposit 10%) | Interest Rate 4.79% p.a. Comparison Rate 5.15% p.a. | Interest Rate 4.89% p.a. Comparison Rate 5.22% p.a. |
3 Year Home Advantage Package (Min Deposit 10%) | Interest Rate 5.39% p.a. Comparison Rate 5.07% p.a. | Interest Rate 5.49% p.a. Comparison Rate 5.19% p.a. |
5 Year Home Advantage Package (Min Deposit 10%) | Interest Rate 5.89% p.a. Comparison Rate 5.42% p.a. | Interest Rate 5.99% p.a. Comparison Rate 5.53% p.a. |
3 Year Fixed Rate (Min Deposit 10%) | Interest Rate 5.39% p.a. Comparison Rate 6.49% p.a. | Interest Rate 5.49% p.a. Comparison Rate 6.53% p.a. |
5 Year Fixed Rate (Min Deposit 10%) | Interest Rate 5.89% p.a. Comparison Rate 6.5% p.a. | Interest Rate 5.99% p.a. Comparison Rate 6.55% p.a. |
2 Year Fixed Rate (Min Deposit 10%) | Interest Rate 5.19% p.a. Comparison Rate 6.58% p.a. | Interest Rate 5.29% p.a. Comparison Rate 6.6% p.a. |
1 Year Fixed Rate (Min Deposit 10%) | Interest Rate 4.69% p.a. Comparison Rate 6.68% p.a. | Interest Rate 4.79% p.a. Comparison Rate 6.69% p.a. |
Standard Variable (Min Deposit 5%) | Interest Rate 6.79% p.a. Comparison Rate 6.89% p.a. | Interest Rate 6.79% p.a. Comparison Rate 6.89% p.a. |
Bridging Home Loan (Min Deposit 28%) | n/a | Interest Rate 7.04% p.a. Comparison Rate 7.13% p.a. |
Discount Variable (Min Deposit 5%) | Interest Rate 6.24% p.a. Comparison Rate 6.26% p.a. | n/a |
Heritage Bank home loan calculator
Thinking about taking out a home loan with Heritage Bank? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Heritage Bank home loans compare with other options.
Your estimated mortgage repayments
at interest rate 3.65%
Total interest payable
$0
Total loan repayments
$0
Contact a mortgage broker
Heritage Bank homeloans are vailable through brokers who can help find the right loan and manage your application at no charge.
Heritage Bank customer service
Heritage Bank has a network of over 60 branches spread across Brisbane, Sunshine Coast and Wide Bay Burnett areas. Home loan customers can contact Heritage Bank by calling the contact centre from Monday through to Saturday or can email the bank directly.
- Customer service (phone, email, branch)
- Mobile app
- Online banking
- Mobile banking staff
How to Apply
Borrowers wanting to apply for a Heritage Bank home loan can either complete a secure online loan application form or can call through to the Contact Centre for more support. Queensland based borrowers can apply in their local branch. Before applying for a Heritage Bank home loan, consider what you can afford to borrow and what other costs you need to factor in. To apply for a Heritage Bank home loan, you will need to supply the following information:
- Proof of identity.
- Proof of income and employment, whether you’re self-employed or you’re on a salary.
- Superannuation statements.
- Proof of three months of savings history.
About Heritage Bank home loans
Heritage Bank home loans cater for a wide variety of mortgage customers:
- Owner-occupier home loans
- Investor home loans
- Lines of credit
- Bridging loans
- SMSF loans
- Reverse mortgages
Heritage Bank home loans also come with a range of interest rate options:
- Variable rate
- Fixed rate
- Principal and interest
- Interest-only
- Split loans
If borrowers package their home loan with a Heritage Bank credit card and transaction account, they can qualify for mortgage rate reductions and fee waivers.
Heritage Bank mortgages have maximum loan terms of 30 years. Unlimited additional repayments are allowed. Depending on which home loan you choose, Heritage Bank also offers offset accounts and redraw facilities.
Heritage Bank home loan rates tend to range from very low to moderate, while application and ongoing fees tend to be moderate. Fees may apply for making redraws or closing fixed-rate mortgages early.
Heritage Bank home loan rates
Heritage Bank home loan rates differ from product to product, but they tend to be very low, moderately low or moderate.
As a challenger lender, Heritage Bank has to find a way to differentiate itself from the big four banks - which is one reason why it offers lower mortgage rates. Another reason Heritage Bank offers lower interest rates is that it is owned by its customers, rather than by shareholders, which means it doesn’t have the same imperative to maximise profits.
Heritage Bank offers three tiers of pricing for its home loans. From lowest to highest, they are:
- Standard home loans
- Line of credit loans
- Bridging loans
Heritage Bank also charges different interest rates for owner-occupier mortgages (lower) versus investment mortgages (higher) and for principal-and-interest mortgages (lower) versus interest-only mortgages (higher).
Heritage Bank home loans review
Heritage Bank may be based in Queensland, but it provides home loans to borrowers all over Australia, whether directly from its branches or via mortgage brokers.
Heritage Bank’s bread and butter is owner-occupier home loans and investment home loans, both at the time of purchase or through refinancing. But it also offers specialist mortgage products such as lines of credit, bridging loans, SMSF loans and reverse mortgages.
Heritage Bank home loans can be principal and interest or interest-only, while borrowers can also choose for their mortgages to be variable, fixed or split.
In terms of interest rates, Heritage Bank tends to be at the cheaper end of the market, with mortgage rates tending to be very low, moderately low or moderate.
Its fees, though, are more likely to be moderate rather than market-leading. Those fees include application fees, monthly account-keeping fees and redraw fees.
Learn more about home loans
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
How do you compare home loans?
To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.
Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.
Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.
How can I apply for a first home buyers loan with Commonwealth Bank?
Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.
You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.
You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.
CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property. The link to download this app is available on the same webpage.
If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.
When does Commonwealth Bank charge an early exit fee?
When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.
The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:
- If you switch your loan from fixed interest to variable rate
- When you apply for a top-up home loan
- If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
- When you prepay the entire outstanding loan balance before the end of the fixed interest duration.
The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.
What are the features of home loans for expats from Westpac?
If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.
The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.
Why does Westpac charge an early termination fee for home loans?
The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee.
The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.
Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.
When do mortgage payments start after settlement?
Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.
Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.
Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.
Cash or mortgage – which is more suitable to buy an investment property?
Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.
A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.
Do you compare mortgages using the comparison or advertised rate?
A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.
However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.
A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.
Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.
Who offers 40 year mortgages?
Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank.
Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.
Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
How do I apply for a home loan pre-approval from Commonwealth Bank?
To apply for a Commbank home loan pre-approval, you can either call the bank at 13 2224 or meet one of the bank’s lending specialists. You can set up a meeting online if you wish. You’ll need to do some homework before contacting the bank, such as gathering information on the kind of properties you’d like to buy and their prices.
Preparing a financial summary, which lists all your income sources as well as significant expenses, can also help determine how much you can afford to borrow. You may also want to check your credit score before applying for pre-approval.
It’s worth remembering that a CBA home loan pre-approval doesn’t guarantee that you’ll get the loan. Once you get the pre-approval, you’ll have about three to six months to decide on a property and apply for the home loan. The bank will then confirm that the property is suitable for the loan before fully approving it.
What is a bad credit home loan?
A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.
If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.
What happens to my home loan when interest rates rise?
If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.
When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.
There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.
Do the big four banks have guarantor home loans?
Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.