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Since 1875 we ve helped more than half a million people buy their dream home. It s what we do best. With 140 years of home loan know-how, you won t find a more experienced partner than Heritage. Experience counts for a lot, but value is what we really pride ourselves on. As well as some of the lowest rates around, our home loans are also packed with features you ll struggle to find elsewhere, like unlimited extra payments and unlimited redraws across most of our products. How do we offer our customers such a good deal? It s simple; as Australia s biggest customerowned bank, we don t have any shareholders to keep happy. Our customers are the entire reason we re here. We call it the People first difference. No wonder our customer satisfaction rating has averaged more than 90% since records began*. Talk to us about a home loan today visit your local branch, or call a lending specialist now on 13 14 22. *Source: Roy Morgan 2 Heritage Bank
Find the right loan for you As a general guide, fixed rate loans suit people who want to know exactly how much they ll pay each month, discount variable loans are great for those who want a simple low price, and standard variable loans offer more features, like 100% offset accounts and greater flexibility on repayment options. If you want to get even better value on your loan, credit card and transaction account, grouping them together in a Home Advantage Package is the way to go. We ve detailed all our loans here to help you decide which one is best for you. Home Loans 3
Owning our home gives us a feeling of being free. It has given us confidence in ourselves and each other and we are very grateful for the friendliness and support Heritage has given us during this time. Brianna and Cameron, Victoria Point. 4 Heritage Bank
Variable loans Variable rate loans are generally more flexible than fixed rate loans because you re not locked in to a fixed term contract. If your circumstances change, so can your loan. Discount Variable Looking for a simple low rate, and don t need an offset account? Our Discount Variable home loan could be perfect for you. With no monthly administration fee, and one of the lowest variable rates in Australia, our Discount Variable home loan is as cheap as chips, and you can still make unlimited extra repayments to get the balance down sooner. Get a simple low interest rate (generally one of the lowest in Australia) Make unlimited extra repayments Unlimited redraw, if you want to access your extra repayments again No monthly administration fee Further advances available People first service from your own dedicated lending specialist Available on loans from $150,000 Home Loans 5
Standard Variable Heritage Bank s Standard Variable home loan is a great option if you want to save as much interest as possible with an offset account, with very few restrictions and penalties. If you re after maximum flexibility and a great People first rate, this could be the loan for you. Great for those who want to make more than the minimum repayments With our Home Advantage Package (see page 9) you can package your loan with a credit card and transaction account to get a better rate and make great savings across your entire banking portfolio 100% offset account available Consistently lower rates than the standard variable rate of the big four banks Make unlimited extra repayments Unlimited redraw, if you want to access your extra repayments again Further advances available People first service from your own dedicated lending specialist 6 Heritage Bank
Fixed rate loans If you want to lock in now and know exactly how much your loan repayments will be over the next 1, 2, 3 or 5 years, a fixed rate loan from Heritage is your best bet. Our fixed rate loans have features a lot of other banks don t offer, like unlimited additional repayments. And if you choose Heritage for your loan, you ll get a dedicated lending specialist to help you through the application process and beyond - that s the difference a People first bank makes. Fixed rate terms of 1, 2, 3 or 5 years Make unlimited extra repayments 1 Unlimited redraw, if you want to access your extra repayments again Partial offset account available Option to refix at end of fixed term at no cost Reverts to our competitive Standard Variable rate when fixed term expires Low introductory Visa card rate Rate Guarantee available Not sure which is the right home loan for you? Use the home loan chooser at heritage.com.au, answer a few questions and we ll match you with the perfect loan and a People first rate. Home Loans 7
Find out how much you could be saving by using our online home loan calculators. Available at www.heritage.com.au/calculators 8 Heritage Bank
Home Advantage Package Package your standard variable, fixed rate or living equity loan together with a credit card and savings account and you could save up to $1,800 in the first year with further discounts on interest rates and fees across the board. One low annual fee of $350 gets you: $0 application fee on home loans $0 application fee on personal loans Your choice of Heritage credit card with $0 annual fee Heritage transaction account with $0 accountkeeping fee and $0 transaction fees 2 Fee free access to Heritage ATMs and more than 2,900 3 Network ATMs nationwide A Visa Debit card Discounts on insurances arranged through Heritage Option to make additional or lump sum repayments Free redraw facility 100% or partial offset account available, depending on your loan type Home Loans 9
Other Loans Living Equity The equity you hold in your home is an asset you can use for additional borrowing for property or share investments, education, or holidays. It can also act as a general line of credit. With the Living Equity line of credit you can access between $20,000 and $500,000 for up to 30 years, and the repayments are interest only for the first 10 years. Features include: Draw up to the approved limit at any time Visa Debit card available Interest only repayments for the first 10 years Reverts to a principal and interest variable rate loan at end of the interest only term Bridging loans Buy your dream home up to 6 months before you ve sold your existing property with no repayments until you move! Features include: No monthly administration fees No regular repayments are necessary 10 Heritage Bank
Reverse Mortgage If you own your home, Heartland Seniors Finance (Heartland) Reverse Mortgage 4 can turn your home into a cash asset. If you are 60 or over, a Heartland Reverse Mortgage lets you access some of the equity in your home. Heartland is Canstar s 2017 Reverse Mortgage Provider of the Year and has held Money Magazine s Best Reverse Mortgage award for seven consecutive years. Their loan also includes considerable customer protections, to help provide Heritage customers with peace of mind.(please note that this product is only available through Heritage branches and not through our broker network). Family Guarantee A Family Guarantee loan allows people to help their family members enter the property market. Heritage s Family Guarantee works by splitting the total amount across two loans- one loan secured by the property being purchased and the second loan partially secured by an immediate family members property in their capacity as guarantors. This structure reduces the LVR to 80% or less and helps the borrowers avoid the need for Lenders Mortgage Insurance thus making the loan more affordable. It also helps limit the amount that the immediate family member/s are guarantors for, providing them with peace of mind. - Only available to purchase an owner occupied property Home Loans 11
Offset Accounts Want to pay back your loan sooner and cut the amount of interest paid, without having to increase your repayments? An offset account operates like a savings account but instead of paying interest it reduces the amount of interest you pay on your loan. Below is an example of how a Mortgage Crusher offset account could help you. Without Mortgage Crusher With Mortgage Crusher Home loan balance $300,000 Pay interest on this amount Home loan balance less balance in Mortgage Crusher account $287,000 Pay interest on this amount only Balance in Mortgage Crusher Account $13,000 Home loan amount Mortgage Crusher account balance Balance that interest is paid on $300,000 $13,000 = $287,000 Example only. Customers should seek their own taxation advice 12 Heritage Bank
Eligible Loans LOAN TYPE Mortgage Crusher Mortgage Crusher 100% offset Loan Offset Standard Variable Bridging Loan Home Advantage Package Variable Home Advantage Package Fixed Fixed Rate Personal loans The Heritage Mortgage Crusher account provides 100% interest offset 6, which means you can reduce the amount of interest you pay on your home loan and help pay it out sooner. Linked to your Standard Variable home loan, funds in the Mortgage Crusher account help cut the interest paid on your loan. In other words, you can offset the Mortgage Crusher account balance against your loan balance for calculation of loan interest. You could save money at tax time with an offset account! Most Australians pay tax on the interest they earn from savings accounts. For example, if you earn $65,000 a year, and you have $10,000 in a savings account paying 4% interest per annum, you d earn around $400 interest for the year. You d then have to pay 32.5% tax on that interest, which would leave you $130 worse off. If you had that same $10,000 sitting in an offset account all year, and you were paying 5% per annum on your mortgage, you d end up paying $500 less interest on your mortgage that year. What would you rather? Paying $130 extra tax and earning $270 in interest, or saving $500 in interest repayments on your home loan? Home Loans 13
Loan Offset partial offset If you have a credit balance in your Loan Offset account on any given day, Heritage will apply a reduced interest rate on an equivalent amount of your home loan. The reduced interest rate is based on the home loan interest rate less the Loan Offset interest rate (available on Heritage s website). The Loan Offset account is also available to be linked to a Fixed Rate loan as well as a range of variable rate home loans. Four steps to maximising the benefit of your offset account 1. Ensure all your income is paid directly into to your offset account. 2. Minimise withdrawals and leave the funds in the offset account for as long as you can. 3. If you like earning Heritage rewards you could pay for some of your purchases on your Heritage credit card and earn more rewards for doing so. 4. Before the interest-free period on your Heritage credit card has passed, pay off your entire credit card balance from your offset account. Other information to consider Loan interview checklist Being prepared with the right documents will speed up your approval process. You ll need to bring evidence of your current income and savings; details of your financial commitments; details of your assets; proof of identity; solicitor s 14 Heritage Bank
details; and building plans and approvals (if you re building a home). Once your application and interview is complete you should have an answer in a few days. To be fully prepared, download the comprehensive Home Loan Checklist from heritage.com.au. Insuring your home 7 At Heritage, we put People first with our insurance policies too. With insurance through Heritage, your building and contents can be protected and you can have peace of mind from day one. We have buildings and contents value calculators at your disposal to assist you in ensuring you re adequately covered. It s time well spent to take a complete stock-take of your home s contents. Don t make the common mistake of being underinsured. You may be surprised at how much you own and how much it would cost to replace! Insuring yourself You might also like to consider Five Year Mortgage Repayment Insurance. For most of us, our biggest financial commitment is our home loan. With a choice of disability, unemployment and/or death cover, Five Year Mortgage Repayment Insurance can cover your mortgage repayments up to the policy limit if you can t work. Heritage can arrange home, contents and personal insurance for you. Speak with your Branch Manager or call 13 14 22. Home Loans 15
Making repayments Choose from a range of convenient and easy options: Direct salary crediting Set-up an automatic payment from your Heritage account Set-up a direct debit from another bank or financial institution BPAY Internet or telephone banking (via transfer) Other costs to consider when buying a home In addition to the actual purchase price of your new home, there can be a number of other fees and taxes to pay. The list below covers some of the main costs you may need to consider. Use our online home loan calculators to find out how much you can borrow, how much better off you can be by refinancing to Heritage, and to estimate the REAL cost of buying a new home, including loan repayments, stamp duty, council rates, insurance and much more! Available at heritage.com.au 16 Heritage Bank
Title search fees This is a fee your solicitor charges to ensure the property you re buying is actually owned by the person selling it. This search fee also finds information regarding encumbrances and/or caveats. Property Transfer Duty This is a tax payable to the government on most property purchases. The amount varies from state to state, depends on the value of the property and concessions may be applicable. Mortgage Stamp Duty This is a tax paid to the government when you purchase your home. The fee depends on the intended purpose of the loan and varies from state to state. Mortgage Registration Fee A charge made by the government to register your mortgage document. GST GST only applies to new properties built after 1 July 2000 and to new house and land packages. Some buying costs attract GST, such as conveyancing and solicitors fees, valuation fees and moving costs, but the tax will be included in the invoices. You won t have to pay GST on a preowned property and it doesn t apply to your loan repayments, bank charges, residential rents or council and water rates. Home Loans 17
Conveyancing Fees for solicitors and conveyancers vary from state to state and depend on the time spent and work that they have to carry out for your purchase. The fees should include checking the contract, carrying out searches and generally making sure the transaction goes smoothly. Inspection reports Having your property inspected is an important element of the buying process. It s important you don t rush into anything until you get a professional building and pest inspection, especially if you re buying at auction. Removalists The cost of moving depends on many factors, including how much you need to move, the distance you are moving, and ease of access. Get a few quotes and don t forget to ask about insurance. Valuation fee Your lender will arrange a valuation of the property to assess its value. At Heritage, we cover the costs of your first valuation to the value of $330 including GST, but you may need to allow for costs of any additional properties or valuations. Mortgage insurance Mortgage insurance is usually required if you are borrowing more than 80% of the property value. This upfront one-off fee protects your lender if you fail to pay your loan and the property has to be sold, but the money raised does not cover the 18 Heritage Bank
loan. It is calculated on a sliding scale, depending on the loan amount and ratio, and can range from several hundred to several thousand dollars or more. Loan application fee Sometimes called an establishment fee, you pay this to your lender for processing your loan. 1 Break fees may apply. 2 Free EFTPOS transactions, ATM withdrawals, balance and enquiries at Heritage and Heritage network ATMs (Westpac, St George, Bank of Melbourne and Bank SA branded ATMs. Excludes ATMs overseas and ATMs located in BP service stations 3 Including Westpac, St George, Bank of Melbourne and Bank SA ATMs. Excludes ATMs overseas and in BP petrol stations. 4 The Heartland Reverse Mortgage is a loan provided by the Heartland Australia Group Pty Ltd and its related bodies corporate. They are not related to Heritage Bank. Heritage Bank is only a promoter and distributor of this loan. Successful applicants will not be entering into any agreement with Heritage Bank. Applications for a Heartland Reverse Mortgage are subject to their loan approval criteria. Full terms and conditions will be included in any loan offer. Fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780/ Australian Credit Licence No. 386781). 6 Full offset applies when account balance is over the minimum account balance of $500 for interest purposes. 7 Home insurance is issued by Allianz Australia Insurance Limited (Allianz) ABN 15 000 122 850 AFSL 234708. For Mortgage Repayment Insurance and Loan Repayment Insurance, the Disability and Unemployment cover is underwritten by Allianz Australia Insurance Limited (Allianz) ABN 15 000 122 850 AFSL 234708. The Death cover is underwritten by Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFSL 296559 (Allianz Life). Allianz acts as Allianz Life s agent in offering and administering the Death cover. In arranging this insurance Heritage Bank acts as an agent for Allianz and not as your agent. We do not provide advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision please consider the product disclosure statement available from available in branch or at www. heritage.com.au.if you buy insurance Heritage may be paid commission (up to 30% of the premium). All examples (including interest rates) are an estimate only and are provided solely for illustrative purposes. Please note that Heritage believes that the legal and taxation consequences are as described, however you should not rely on these descriptions and we recommend you obtain your own professional advice regarding the taxation implications. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice. Please read the Guide to Heritage Deposit Products, the Guide to Heritage Credit Card products and the Heritage Bank Fees and Limits Guide (available in branch, by phoning 13 14 22 or at www.heritage.com.au) before making any decision about products outlined in this brochure. This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. To decide if this product is appropriate for you, please read and consider the relevant Product Disclosure Statement (available in branch or at www.heritage.com.au) Information correct as at the effective date of this brochure and subject to change without notice. Home Loans 19
Find out more Drop into your nearest Heritage branch Visit heritage.com.au Call 13 14 22 Connect with us Facebook: facebook.com/heritage Twitter: @heritagebank YouTube: youtube.com/heritagepeoplefirst Talk to us today about a home loan. This environmentally responsible brochure is printed using vegetable based inks on a paper that is produced using only sustainable resources under the guide of Responsible Forestry Practices. This paper is endorsed by the Forest Stewardship Council, is elemental chlorine free, and is manufactured under Environmental Management System ISO 14001. Heritage Bank Limited. ABN 32 087 652 024. AFSL 240984. Australian Credit Licence 240984. LE001 Effective 04/17