Heritage Bank Personal Loans
Established way back in 1875, Heritage Bank has long been in the business of helping Australians realise their financial dreams. Now, with more than $10 billion in assets, Heritage is Australia’s largest customer owned bank, offering a wide range of banking products and services, with a focus on low fees, competitive rates and great customer service.
This idea of customer owned financial enterprises began in Australia more than 150 years ago, when groups of like-minded workers and communities came together to create building societies, credit unions and mutual banks. Over the years, the concept developed as those financial institutions grew and merged together to better serve their customers.
Today, more than 4 million Australians across the country bank within the customer owned banking sector. So then, why would you choose a customer owned bank such as Heritage Bank? First up, when you open an account with Heritage, you become a member and part-owner, with an equal stake in the organisation. This not only gives you a say in how the bank is run, it also means you are the bank’s focus.
You see, unlike traditional banks that have to chase profits to please shareholders, Heritage Bank keeps its focus on ‘putting people first’. And because Heritage is not paying out profits to shareholders, it can reinvest those funds back into the bank to provide fair pricing, flexible products and competitive rates and fees – alongside award-winning customer service.
Want to see what that means within its personal loan offering?
Fixed Personal Loan
With a Heritage Bank Fixed Personal Loan, the rate you pay when you are approved for the loan will remain the same throughout your loan term. When would this type of personal loan work for you?
- You want to lock in your rate. If you find a rate that looks good, choosing a fixed rate personal loan can allow you to lock in that rate for the life of the loan. So, no matter what rates are doing elsewhere in the market, you know that your rate will not change.Pro: This can work especially well when rates are low and you expect they could rise in the near future.Con: If you opt for a fixed rate loan when rates are high, you will not benefit should rates start to fall.
- You like to know exactly how much your repayment will be. If you run a tight ship, and always like to know where every cent goes, a fixed rate loan could make budgeting that much easier. Unlike with a variable loan, where rates can change over time, a fixed rate loan has a repayment that will never change.Pro: You will always know how much you have to set aside each month to cover your loan repayment.Con: Some lenders don’t allow borrowers to make extra repayments on fixed rate loans. This can make them a less flexible option.
With that being said, the Heritage Bank Fixed Personal Loan is more flexible than many fixed rate loans on the market.
- You can make additional or lump sum payments. This allows you to chip away at your loan, potentially lowering the amount you will pay in interest, to pay off the loan sooner.
- There are no penalties for early payout. If you happen to pay off the loan early, you will not pay a penalty for doing so. This makes the Heritage Bank Fixed Personal Loan much more flexible than many other fixed rate loans.
- You can redraw additional repayments online. Once you’ve paid extra onto the loan, you have the option to redraw those funds should you need to.
Variable Personal Loan
With a Variable Personal Loan from Heritage Bank, your rate may change over the life of the loan. That means the rate you are approved for can go up or down, depending on the lender. Rate changes are generally affected by the cash rate and changes in the market. So, why would you choose this type of loan?
- You don’t want to lock in a rate. If you think rates may fall in the coming months or years, choosing a variable rate loan could allow you to benefit from that.Pro: By paying a lower rate on your loan, you will pay less in interest. This will lower your repayment amount, or alternatively, allow you to pay more than your repayment to pay off your loan faster.Con: If rates increase, your repayment amount will increase as well. Not only will you be paying more in interest, you will have to make sure you have sufficient funds in your budget to cover the larger repayment each month.
- You want more flexibility. In general, variable rate loans offer more flexibility than fixed rate loans, allowing borrowers to make extra repayments and pay off their loan early. While this loan does indeed offer these features, Heritage Bank’s fixed rate loan offers similar flexibility.Pro: Using these flexible features, you can work on paying down your loan faster.Con: There are no cons that we can think of here.
Heritage Bank points to the following flexible features on its Variable Personal Loan.
- You can take advantage of flexible repayment options. This includes the ability to make additional or lump sum payments to pay down or pay off your loan.
- You can repay in full at any time. Similar to the fixed rate loan option from Heritage Bank, the bank allows for early payout, with no penalty.
- You can redraw additional repayments when it suits you. With the option to redraw additional payments online, you can feel more comfortable paying in extra to pay down your loan faster.
Why choose a personal loan from Heritage Bank?
What else do you need to know about these Heritage Bank personal loans? Let’s take a look at some more important features.
- Loan Purpose. Again, Heritage Bank offers plenty of flexibility in how you can use its personal loans. Giving some example of how you may use the loan, the bank mentions renovations and travel, weddings and educational expenses, debt consolidation and cars over five years old. For cars less than five years old, there is the Heritage Bank Secured Car Loan.
- Loan Term. With both the fixed rate and variable rate personal loan from Heritage Bank, you can choose a loan term between one and seven years. This means, if you choose a smaller loan, you can pay it off faster to keep interest to a minimum. Or, if you choose a larger loan, you can spread your repayments over a longer period.
- Loan Amount. Heritage Bank offers personal loans from $5,000. However, the amount you will be allowed to borrow will depend on your personal circumstances. When you apply, the bank will look at factors such as your income and creditworthiness, to then determine how much it can safely lend you.
- Secured or Unsecured. Giving you even more flexibility in your choice, when you apply for a Heritage Bank personal loan, you will have the option to secure the loan against an asset.
- If you opt for a secured personal loan, you can borrow up to $100,000 (depending on your personal circumstances).
- If you opt for an unsecured personal loan, you can borrow up to $25,000 (depending on your personal circumstances).
As you can see, you have the opportunity to borrow much more with a secured loan – but it will place more risk on you as a borrower. Why? If you fail to repay your loan, the lender has the right to repossess the asset placed against the loan. This makes it especially important that you only take out a loan that you know you can afford to repay.
With that being said, you may also be able to take advantage of lower interest rates on a secured loan. While the rate you pay will depend on your circumstances as a borrower, opting for a secured loan could help you save on interest, to create a more affordable repayment schedule.
What should you be aware of?
As with any personal loan, it’s important to read the small print before you apply. You can always ask Credit World or the lender questions if you are unsure about anything. Check for any fees you might pay, which may include one-off application or establishment fees, ongoing fees such as service or monthly fees, and other fees like late payment fees.
Buying a Car?
When buying a car, opting for a secured car loan can allow you to save on interest. While Heritage Bank offers the above fixed rate and variable rate loan options for cars over five years old, it also provides a Secured Car Loan for new and used cars up to five years old. Here’s a rundown of what you need to know.
- Loan terms range between one and seven years. Use a car loan calculator to work out a repayment schedule that fits your budget, within a loan term that’s as short as comfortably possible.
- Loan amounts start from $5,000. Unlike some secured car loans with a much higher starting point, Heritage Bank offers secured car loans from $5,000. This can be handy if you only want a little runaround.
- You can purchase or refinance a new or used vehicle, up to five years old.
- 100% finance is available to approved applicants. That means you don’t need to worry about putting down a deposit unless you want to.
- Offering a fixed rate, this loan has fixed repayments that won’t change over the life of the loan. This can make budgeting easier.
- While it may be a fixed rate loan, it still offers plenty of flexibility. With flexible repayment options on offer, there is no penalty for paying out early or making extra repayments.
- You can also access any extra repayments you pay into the loan using the free online redraw facility.
Why Heritage Bank?
So, now you know more about the personal loans Heritage Bank has to offer, what about the bank itself? Why should you choose Heritage Bank as your lender over all the other options out there?
- You have a say. Heritage Bank is owned by its customers. As a customer and member of the bank, you have a say in how the bank is run. This may mean attending the bank’s AGM or providing feedback to the bank direct.
- You are the focus. While traditional banks focus on pursuing profits for shareholders, Heritage Bank focuses on you. You are a shareholder in this bank, which means Heritage Bank is working for the benefit of you.
- You can benefit from competitive fees and rates. Instead of paying out profits to shareholders, Heritage Bank can reinvest those profits to benefit you. That’s why you will often find customer owned banks such as Heritage offering lower fees and more competitive rates than may be found within larger financial providers.
- You have the support of award-winning customer service. Another focus of Heritage Bank is its customer service. The bank notes that it has more staff in order to offer customers a higher lever of customer service. And it must be doing something right, as it has won a number of awards over recent years.
Like the sound of Heritage Bank? Want to find out more about its personal loans? Click through to each personal loan page or contact us today with any questions.