Heritage Bank
Discount Home Loan
Investment Variable Interest Only 0 Years 80% LVR
6.64%
Interest rate
6.66%
Comparison rate
Rates as at 16 Jun 2026
Ratings
★ ★ ★ ★ ★ (1 reviews)
About Discount Home Loan
Key Features
- While it does not have the convenient that comes with an offset account, but $Discount Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.
Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.
LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.
Fees & Costs
- Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.
- Heritage Bank charge a discharge fee of $345, which covers the cost for removing the mortgage that has been registered on the title of your property.
- There is upfront costs of $210 to apply for Discount Home Loan, with no ongoing account keeping fees.
Borrowing Limits
- An LVR of 90% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
- An LVR of 95% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
Eligibility
- Interest only repayment option is not available with Heritage Bank Discount Home Loan for buying next home.
- Interest only repayment option is not available with Heritage Bank Discount Home Loan for refinance.
💡 Tip: To get approved for an interest only home loan you need to have a strong enough income to afford principal and interest (P&I) repayments once your interest only term expires. Sometimes extending your interest only period can be tough and getting approved for a P&I refinance is a lot easier.
IMPORTANT:Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Heritage Bank or a mortgage broker just to be sure. This information should be used as a guide only.
Other rate options for Discount Home Loan
Refinance
Variable · Principal & Interest
0 Years · 70% LVR
5.99%
Refinance
Variable · Principal & Interest
0 Years · 80% LVR
6.09%
Refinance
Variable · Principal & Interest
0 Years · 90% LVR
6.49%
Refinance
Variable · Principal & Interest
0 Years · 95% LVR
6.79%
Investment
Variable · Interest Only
0 Years · 70% LVR
6.54%
Investment
Variable · Interest Only
0 Years · 80% LVR
6.64%
Investment
Variable · Interest Only
0 Years · 90% LVR
7.04%
Investment
Variable · Principal & Interest
0 Years · 70% LVR
6.24%
Investment
Variable · Principal & Interest
0 Years · 80% LVR
6.34%
Investment
Variable · Principal & Interest
0 Years · 90% LVR
6.74%
Owner Occupied
Variable · Principal & Interest
0 Years · 70% LVR
5.99%
Owner Occupied
Variable · Principal & Interest
0 Years · 80% LVR
6.09%
Frequently Asked Questions
Are there costs when I exit or refinance to another lender?
Heritage Bank charge a discharge fee of $345, which covers the cost for removing the mortgage that has been registered on the title of your property.
Does Heritage Bank Discount Home Loan comes with an offset account?
No, Discount Home Loan does not come with an offset account. Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.
Does Heritage Bank Discount Home Loan comes with an offset account?
No, Discount Home Loan does not come with an offset account. While it does not have the convenient that comes with an offset account, but $Discount Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.
What are the costs to apply for Heritage Bank Discount Home Loan?
There is upfront costs of $210 to apply for Discount Home Loan, with no ongoing account keeping fees. Settlement fee: $210
Fees
- Application fee
Important Information
Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Heritage Bank or a mortgage broker just to be sure. This information should be used as a guide only.