Date: 6 October 2017

Heritage Bank resumes investor lending

Heritage Bank will resume investor lending effective Monday 9 October 2017.

We temporarily stopped accepting new applications for investment home loans from 1 September.

This was to ensure we complied with regulatory limitations on investment lending growth.

Prudent management of our investment lending portfolio is critical to ensure that we remain within the

caps APRA has placed on both growth in investor and interest only lending.

After monitoring our approvals and the composition of our loan portfolio, we believe we are now in a

position to comply with these regulatory requirements moving forward, however it will be continue to be

closely monitored.

From Monday we are comfortable with resuming lending to investors, both for principal and interest loans,

and interest only loans. The maximum Loan- to-Value Ratio for all new investment lending will remain

at 80%.

Home Loan Campaign - no application fee

With the reintroduction of investment lending, we have also extended our campaign to include investment

loans. Please refer to the attached updated flyer.

We have also updated our comparison rates for investment lending based on our current offer of no

application fee for eligible 'new home loans' and the waiving of the first year's package fee on eligible

home advantage package loans.

Please ensure that these changes are communicated to the appropriate people within your organisation.

Loan qualifying details

Repayment

Type

Principal &

Interest or Interest

Only

Principal &

Interest or Interest

Only

Principal &

Interest or Interest

Only

Principal &

Interest or Interest

Only

Existing Fixed rate (within 24

months of expiring)

New Mortgage Loans (fixed /

variable)* Higher of the Qualifying Rate or actual rate + 2.2% **

Existing Variable rate

Existing Fixed rate (with more

than 24 months remaining)

Commitment Calculation Loan Type

Higher of the Qualifying Rate or actual rate + 2.2% **

Higher of the Qualifying Rate or actual rate + 2.2% **

Higher of the Qualifying Rate or actual rate + 2.2% **

Interest Only

Interest Only

* New mortgage loans / new lending are defined as loans which have not been funded, irrespective of the financier

or purpose of the loan.

Regards

Michael Trencher

Head of Broker Distribution

Heritage Bank

M 0458 759 699

E trencher.m@heritage.com.au

www.heritage.com.au

** Where the remaining principal and interest term is unascertainable, the maximum term for qualification is to be 25

years, apart from line of credit facilities, where the maximum term for qualification is 20 years.

The standard mortgage loan qualifying rate is currently 7.15%

Interest Only Loans

Based on the facility Limit, amortised over the remaining

principal & interest period applicable to the loan **Line of Credits

Based on the principal amount owing, amortised over the

remaining principal & interest period applicable to the loan

**

For new lending - effective 1 September 2017

Loan product

Current

Interest Rate

Discount New

Interest Rate

Change Comparison

Rate*

Discount Variable: $150,000+ 4.59% 4.59% 0.00% 4.61%

LVR1 <=80% 3.97% 0.62% 3.97% 0.00% 3.99%

LVR >80%, <=90% 4.07% 0.52% 4.07% 0.00% 4.09%

LVR >90%, <=95% 4.17% 0.42% 4.17% 0.00% 4.19%

Standard Variable 5.14% 5.14% 0.00% 5.25%

Home Advantage Variable:

$150,000 to $249,999 LVR1 <=80% 4.09% 1.05% 4.09% 0.00% 4.44%

LVR >80%, <=90% 4.19% 0.95% 4.19% 0.00% 4.54%

LVR >90%, <=95% 4.29% 0.85% 4.29% 0.00% 4.63%

$250,000 to $699,999 LVR1 <=80% 4.04% 1.10% 4.04% 0.00% 4.39%

LVR >80%, <=90% 4.14% 1.00% 4.14% 0.00% 4.49%

LVR >90%, <=95% 4.24% 0.90% 4.24% 0.00% 4.58%

$700,000 or more LVR1 <=80% 3.99% 1.15% 3.99% 0.00% 4.34%

LVR >80%, <=90% 4.09% 1.05% 4.09% 0.00% 4.44%

LVR >90%, <=95% 4.19% 0.95% 4.19% 0.00% 4.54%

Standard Fixed: 1 year fixed 3.89% 3.89% 0.00% 5.12%

2 year fixed 3.99% 3.99% 0.00% 5.03%

3 year fixed 4.09% 4.09% 0.00% 4.96%

5 year fixed 4.49% 4.49% 0.00% 4.97%

Home Advantage Fixed: 1 year fixed 3.89% 3.89% 0.00% 4.42%

2 year fixed 3.99% 3.99% 0.00% 4.42%

3 year fixed 4.09% 4.09% 0.00% 4.44%

5 year fixed 4.49% 4.49% 0.00% 4.60%

Living Equity 5.51% 5.51% 0.00% N/A

Home Advantage Living Equity:

$150,000 to $249,999 5.05% 0.46% 5.05% 0.00% N/A

$250,000 to $699,999 5.00% 0.51% 5.00% 0.00% N/A

$700,000 or more 4.95% 0.56% 4.95% 0.00% N/A

Bridging Loan 5.69% 5.69% 0.00% 5.77%

Things you should know

Home Loan Rates

Owner-Occupier Loan Rates

Variable

Fixed

Line of Credit

Bridging Finance

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on

total lending in the package. Discount Variable LVR rates include discounts from the Discount Variable Loan Rate. Discounts are not available in conjunction with any other interest rate

discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria

and fees apply.

^ The loan to value ratio (LVR) is the ratio of the loanamonut against the value of the secured property.1Loan to Value Ratio (LVR) is the loan amount divided by the value of the secured property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a

maximum LVR of 95%.

*Home loan comparison rate based on a $150,000 loan over 25 years. Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to

$249,999.

WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different

comparison rate.

Heritage Bank Limited ABN 32 087 652 024 AFSL 240984 Australian Credit Licence 240984 www.heritage.com.au

For new lending - Effective 1 September 2017

Loan product

Current

Interest Rate

Discount New

Interest Rate

Change Comparison

Rate*

Discount Variable: $150,000+ 5.14% 5.14% 0.00% 5.15%

P & I LVR1 <=80% 4.49% 0.65% 4.49% 0.00% 4.51%

Interest Only LVR1 <=80% 5.14% 5.14% 0.00% 5.15%

Standard Variable 5.69% 5.69% 0.00% 5.79%

Home Advantage Variable: - P&I

$150,000 to $249,999 4.74% 0.95% 4.74% 0.00% 5.08%

$250,000 to $699,999 4.69% 1.00% 4.69% 0.00% 5.03%

$700,000 or more 4.64% 1.05% 4.64% 0.00% 4.98%

Home Advantage Variable: - Interest Only

$150,000 to $249,999 5.44% 0.25% 5.44% 0.00% 5.76%

$250,000 to $699,999 5.39% 0.30% 5.39% 0.00% 5.72%

$700,000 or more 5.34% 0.35% 5.34% 0.00% 5.67%

Standard Fixed: - P&I

1 year fixed 4.49% 4.49% 0.00% 5.67%

2 year fixed 4.49% 4.49% 0.00% 5.56%

3 year fixed 4.59% 4.59% 0.00% 5.49%

5 year fixed 4.99% 4.99% 0.00% 5.50%

Standard Fixed: - Interest Only

1 year fixed 5.19% 5.19% 0.00% 5.74%

2 year fixed 5.19% 5.19% 0.00% 5.70%

3 year fixed 5.29% 5.29% 0.00% 5.68%

5 year fixed 5.69% 5.69% 0.00% 5.79%

Home Advantage Fixed:- P&I

1 year fixed 4.49% 4.49% 0.00% 5.05%

2 year fixed 4.49% 4.49% 0.00% 5.03%

3 year fixed 4.59% 4.59% 0.00% 5.04%

5 year fixed 4.99% 4.99% 0.00% 5.18%

Home Advantage Fixed: - Interest Only

1 year fixed 5.19% 5.19% 0.00% 5.12%

2 year fixed 5.19% 5.19% 0.00% 5.16%

3 year fixed 5.29% 5.29% 0.00% 5.22%

5 year fixed 5.69% 5.69% 0.00% 5.48%

Living Equity 5.51% 5.51% 0.00% N/A

Home Advantage Living Equity:

$150,000 to $249,999 5.05% 0.46% 5.05% 0.00% N/A

$250,000 to $699,999 5.00% 0.51% 5.00% 0.00% N/A

$700,000 or more 4.95% 0.56% 4.95% 0.00% N/A

Bridging Loan 5.69% 5.69% 0.00% 5.77%

Things you should know

Heritage Bank Limited ABN 32 087 652 024 AFSL 240984 Australian Credit Licence 240984 www.heritage.com.au

1Loan to Value Ratio (LVR) is the loan amount divided by the value of the secured property (determined by Heritage Bank at assessment), multiplied by 100. Investment loans have a

maximum LVR of 80%.

*Home loan comparison rate based on a $150,000 loan over 25 years. Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to

$249,999.

WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different

comparison rate.

Bridging Finance

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on

total lending in the package. Discount Variable LVR rates include discounts from the Discount Variable Loan Rate. Discounts are not available in conjunction with any other interest rate

discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria

and fees apply.

^ The loan to value ratio (LVR) is the ratio of the loanamonut against the value of the secured property.

Investment Loan Rates

Variable

Fixed

Line of Credit

Home Loan Rates

#To approved applicants only. No application fee offer valid for new standard variable, discount variable and fixed rate home loans and no annual fee for first year of Home Advantage package loans, applied for between 1 September and 31 October 2017, and disbursed by 31 January 2018. Offer not valid for further advances, living equity or line of credit loans, bridging loans, business loans, existing customers switching loans, internal refinances, or borrowing for alterations and additions. Conditions, criteria and fees apply. Heritage Bank Limited ABN 32 087 652 024. AFSL and Australian Credit Licence 240984.

What is the campaign offer?• No application fee on eligible owner occupier

and investment ‘new home loans’• Waiving the first year package fee on eligible

Home Advantage Package loans

What loans are included?• Standard Variable• Discount Variable• Fixed Rate• Split loans with 50% or more in Standard

Variable or Discount Variable• Build loans

What loans are excluded?Excluded loans are:• Further advances (including further advance to build)• Switching• Split loan applications on existing Heritage Bank

home loans• Internal refinances• Borrowing for alterations and additions• Bridging loans• Living Equity loans• Line of Credit• Business loans• Equity loans

You find the home. We’ll fit the loan.

Talk to us todaybrokers.heritage.com.au