flagFounded: Founded 1875, became Heritage Bank in 2011

businessOwned by: Customers

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: QBE LMI

account_balanceLender type: Customer-Owned Bank

Heritage Bank is a Queensland-based community bank that has used mortgage brokers to offer home loans across Australia. They’re actually owned by customers and their profits are returned to you as a lower home loan interest rate and reduced fees.

They’ve got a strong code of practice, fair pricing and financial hardship policies to assist customers who aren’t coping.

Their home loans usually have low interest rates but they aren’t big enough to be everything to everyone.

How do Heritage Bank’s home loans compare?

They’re great at

But they’ve got some drawbacks…

  • Self employed borrowers often have to provide interim financials which many don’t have
  • Conservative lending policy
  • People with a bad credit history
  • They aren’t available through all mortgage brokers
  • People who want branch access but live outside of QLD
  • Their LMI provider uses credit scoring so you may get declined for no apparent reason if you are borrowing over 80% of the property value

What home loan types do they have?

Heritage’s Discount Variable Rate Loan often has a special interest rate, and when it does, it’s often one of the best on the market.

Their Home Advantage Package goes head to head with the major bank’s professional packages and offers a great rate and discounts on other Heritage products in return for a low annual fee.

Their Fixed Rate Home Loans are one of the best in the market as they can be used with a construction loan, they allow extra repayments and you can redraw while the loan is fixed. Just don’t pay off the loan in full as break fees still apply.

Their Bridging Loan is usually 1%+ more expensive than their other home loans but of course you only have it for a short period of time while you are moving home. You can then switch to another home loan at a cheaper interest rate.

Tips for applying with Heritage Bank

There are a few quirks with Heritage Bank that make them unusual compared to other lenders.

Firstly, if you are using an apartment or unit as security, then they want to see the latest Strata Levies / Body Corporate Fees to make sure that your levies are up to date.

Secondly, if you are self-employed, then you need to provide much more information than you do with other banks.

Normally two years tax returns and ATO notices of assessment would be fine, however if you apply between January and June each year then Heritage also wants to see BAS and interim financials to get a more up to date picture of your business. Most people don’t do interim accounts so they go to another lender instead.

Use Heritage Bank’s home loan checklist to prepare for your home loan application.

Note: This is the latest home loan checklist effective July 2017. Please refer to Heritage Bank for their most up-to-date document requirements.

Do I need to live in QLD?

Heritage will accept loans for people living anywhere in Australia who are financing a property anywhere in the country.

That being said, they tend to have more flexible lending criteria for locals, especially if you are near their Toowoomba head office.

If you’re outside of QLD, you may find it difficult to find a Heritage branch or to find a mortgage broker that is familiar with their loans.

Heritage Bank client story: Adam & Natasha, NSW


  • To buy a new home.
  • To get a low interest rate.


Simultaneous settlement, buying an owner-occupied property.


Having built strong strong careers in the government sector, husband and wife Adam and Natasha were on their way to retirement and wanted live out their autumn years in their dream home.

With the purchase price upwards of $1 million, money was not problem since they had savings and the rest of the money for their deposit would be coming from the sale of their existing home.

What they wanted was a simultaneous settlement, a “no frills” home loan and a great interest rate to go with it.


Heritage Bank regularly come out with market-leading interest rates and we’re able to apply a further discount because of the relationship that we have with them.

Since Adam and Natasha were both working full-time, earning strong incomes, only had a couple of debts to their name, and were borrowing less than 50% of the property value (LVR), they were able to qualify for one of the lowest fixed rates on the market at the time.

It helped that they only wanted a basic package with no offset account, credit card and just a limited redraw facility.

Although they were about 10 years away from retirement, Heritage was satisfied that they could accumulate sufficient superannuation to cover both the costs of the mortgage and their living expenses without undue hardship.

Compare Heritage Bank to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • Mochrie

    I am considering refinancing to Heritage but since this is my first and only home loan, I don’t know if I should right now. Can you tell me when it would be great to refinance and what the process is? Thanks in advance.

  • Hey Mochrie,

    Refinancing is basically applying for a home loan all over again and when to refinance as well as the benefits would all depends on your goals and what you want to achieve. We have an entire page full of info on refinancing your home loan so please check it out and feel free to add in your comments to that page if you’d like to learn more. Here’s the link to the page:

  • wilder-Neligan

    Okay I understand that refinancing is essentially applying for a home loan all over again so is there anything else worth considering?

  • Well, you may have to pay LMI twice if you still owe more than 80% of the property value. Another consideration is unsatisfactory service from the new lender. You could get a great rate and a great deal but you may not be satisfied with the service provided. One more consideration is the number of enquiries you could add to your credit file – too many enquirires can limit the number of lenders you can qualify to refinance with.

  • Frey

    I would like to sell my current house and buy a new one but I’m not sure if I should sell first, buy first or get a bridging loan. Do you have any advice for me?

  • Hi Frey,
    Simultaneous settlement can often be tricky so we’ve worked out some solutions that work for most people. Please check out the selling and buying a new home page for tips as well as info on how we can help you with your situation:

  • Bridges

    Don’t Heritage bank have any Medico packages for doctors and medical professionals looking for a no lmi home loan?

  • No, Heritage don’t have a Medico package for doctors. However, we can help you find another lender that has and check if you can qualify for a no LMI home loan. Simply call 1300 889 743 to discuss with a mortgage broker who specialises in home loans with waived LMI.