What are the break costs for fixed rate loans with People's Choice and Heritage?

If you exit a fixed rate loan early, break costs may apply. These can be significant, so it's important to consider your long-term plans before committing to a fixed rate.

What fees should I be aware of when getting a home loan with Heritage Bank?

While there are no application or ongoing fees, there is a high discharge fee of $350 for preparing a discharge of mortgage. Make sure to factor this into your plans if you think you might refinance or pay off your loan early.

How much could I save by refinancing to People's Choice and Heritage?

For a $500,000 loan, you could save $402 per month compared to the market, totaling $144,870 over 30 years. A $1,000,000 loan offers savings of $805 per month, equating to $289,741 over the loan term.

Why did Heritage Bank close my business account without explanation?

There have been complaints about Heritage Bank closing business accounts without proper communication. If this happens, contact their customer service immediately for clarification and resolution.

What are the potential interest costs on a $400,000 loan with People's Choice and Heritage?

For a $400,000 loan at a 5.24% interest rate over 30 years, your monthly repayment would be $2,206, with total interest amounting to $394,282.

Can I make extra repayments on a variable loan with People's Choice and Heritage?

Yes, you can make unlimited extra repayments on variable loans, which can help reduce your interest costs and pay off your loan faster.

Are there any benefits for first-time home buyers with People's Choice and Heritage?

Yes, eligible borrowers can take advantage of the Australian Government's 5% Deposit Scheme, which can make it easier to enter the property market.

Why is it difficult to access in-person banking with People's Choice and Heritage?

The closure of 18 People First Bank sites and 15 branches has affected in-person banking access, especially in regional areas. Consider using online services or contacting customer support for assistance.

What should I do if I experience poor customer service with Heritage Bank?

If you encounter issues, document your interactions and escalate the matter to a higher authority within the bank. If unresolved, consider lodging a complaint with the Australian Financial Complaints Authority.

UPDATED FEB 22, 2026

People's Choice and Heritage Home Loans: The 2026 Review

Unlock home ownership with the 5% Deposit Scheme and competitive rates. Beware of the $350 discharge fee. Ready to make your move?

Bheja Verdict

Excellent

4.6/5

✓

Highly competitive rates across products

✓

No fees charged

Check Eligibility

People's Choice and Heritage Home Loans At a Glance

🏷️Best Rate Available

5.49%

Variable • Owner Occupied

💳Application Fee

Upfront fee applies

📅Monthly Fee

Ongoing service fee

Loan Range:$20K - $100.0M

LVR:Up to 95%

Products:60 variations

Offset Account:Available

Current People's Choice and Heritage Home Loan Rates

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* Comparison rate is calculated on a loan amount of $150,000 over 25 years. Rates and fees are subject to change. Terms and conditions apply.

+ Only key fees (application, discharge, ongoing) are displayed - other fees such as redraw, administration, and processing fees may also apply.

People's Choice and Heritage Product Statistics

Real-time insights and market analysis

Average Variable Rate

6.87%

33 products

Average Fixed Rate

6.04%

27 products

Best Available Rate

5.49%

Variable • Owner Occupied • P&I

Total Products

60 variations

Fee Summary

Application Fee

Monthly Fee

Discharge Fee

Late Payment Fee

Key Features

Offset Account

10%

Redraw Facility

88%

Extra Repayments

100%

Split Loan

88%

Product Ranges

Interest Rates5.49% — 9.04%

Max LVR10% — 95%

Loan Amount$20K — $100.0M

How People's Choice and Heritage Compares to Big 4 Banks

FEATURE	People's Choice and Heritage	ANZ	CommBank	Westpac	NATIONAL AUSTRALIA BANK
Best Variable Rate	5.49%BEST	5.89%	5.59%	5.89%	5.94%
Best Fixed Rate (3yr)	5.69%BEST	6.04%	6.04%	5.69%	5.84%
Application Fee	$0BEST	$0	$300	$0	$0
Monthly Admin Fee	$0BEST	$0	$10	$0	$0
Offset Account
Redraw Facility
Product Variations	60	133	90	171	112

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Bheja Insight: People's Choice and Heritage currently leads with the lowest variable rate among the Big 4, making it a strong choice for borrowers seeking flexibility.

Is Your Rate Too High?

Regularly reviewing your home loan rate can ensure you're not paying more than necessary. With People's Choice and Heritage health check tool, you can easily assess whether your rate remains competitive in today's market. Stay informed and potentially save on your repayments by checking your rate today.

Run Full Health Check

About People's Choice and Heritage

Company overview and contact information

Heritage and People's Choice Limited, trading as People's Choice, is a community-owned mutual bank headquartered in Adelaide, South Australia. Formed through the merger of People's Choice Credit Union and Heritage Bank in April 2022, the institution is owned by its members, emphasizing a commitment to serving the community. As an Authorized Deposit-taking Institution (ADI), it operates under the regulatory oversight of APRA and holds both an Australian Financial Services Licence (AFSL) and an Australian Credit Licence (ACL).

People's Choice and Heritage offers a comprehensive range of 16 home loan products with 60 variations, featuring interest rates from 5.24% to 8.79%. These products are designed to cater to a diverse clientele, including both owner-occupiers and investors. The bank delivers its services through a combination of physical branches and online platforms, ensuring accessibility and convenience for its members.

A key differentiator for People's Choice and Heritage is its reputation for no transaction fees on certain accounts and free online transactions. Additionally, the absence of a monthly administration fee for their Everyday Account enhances their appeal. This focus on member benefits, combined with competitive loan offerings, positions them as a strong alternative to larger banks, particularly for those seeking a community-focused financial institution.

Company Details

Legal Name: Heritage and People's Choice Limited

ABN: 11087651125

ACN: 087651125

Headquarters: Adelaide, South Australia

Ownership: mutual

AFSL: 244310

Key Features

People's Choice and Heritage offer a range of community-owned home loan products with flexible repayment options and competitive rates, designed to meet diverse borrower needs.

Online Redraw Facility

Access extra cash if you're ahead on your repayments with our online redraw facility. This feature provides financial flexibility, allowing you to manage unexpected expenses without additional borrowing.

Unlimited Additional Repayments

Make unlimited extra repayments on your loan to reduce your loan term and save on interest. This feature offers you the flexibility to pay off your loan faster without penalties.

Family Guarantee Option

Use your family's home equity as additional security to reduce the deposit required. This option helps first-time buyers enter the property market sooner.

Split Loan Option

Combine fixed and variable interest rates within a single loan to balance stability and flexibility. This allows you to manage interest rate risks while enjoying potential savings.

Build Loan Available

Finance your construction projects with our Build Loan, designed to support new builds or renovations. This option provides tailored funding solutions for your building needs.

Competitive Variable Interest Rates

Benefit from low variable interest rates on our Discount Variable Rate Home Loan. This feature ensures cost-effective borrowing with the potential for interest savings.

Flexible Loan Terms

Choose loan terms ranging from 1 to 30 years to suit your financial goals and repayment capacity. This flexibility helps tailor your loan to your personal circumstances.

Interest-Only Repayment Options

Investors can opt for interest-only repayments to maximize cash flow. This feature allows you to manage your investment property expenses more effectively.

Flexible Repayment Frequency

Select from weekly, fortnightly, or monthly repayment schedules to align with your income cycle. This flexibility makes managing your finances more convenient.

No Monthly Administration Fee

Enjoy cost savings with no monthly administration fees on certain accounts, reducing your overall loan expenses.

Rate-Lock Facility

Secure your chosen fixed rate for up to 90 days from application to funding. This feature protects you from interest rate fluctuations during the loan approval process.

Offset Account Option

Link your loan to an offset account to reduce the interest payable and shorten your loan term. This feature maximizes your savings by offsetting your loan balance with your savings.

Digital Banking Features

Access free and unlimited online banking, including BPAY, direct debits, and transfers. These digital features offer convenience and ease in managing your finances remotely.

Construction Loan Option

Finance your construction projects with tailored loan solutions. This option supports new builds and renovations, providing the necessary funds to complete your projects.

No Application Fee

Save on upfront costs with no application fee, making it more affordable to start your home loan journey.

Fees & Charges

People's Choice and Heritage offer a range of home loan products with a variety of fees, including both upfront and ongoing charges. While some fees are fixed, others vary depending on the specific product or transaction, providing a comprehensive yet transparent fee structure.

Fee Type

Amount

Description

Trust/Company Document Examination Fee

$250

Payable on application for trust/company structures.

Valuer's Fee

Variable

May become payable to Valuation Exchange Pty Ltd if a valuation is obtained for a property subject to a security.

Mortgage Dealing Fee

Variable

Charged per dealing related to the mortgage.

Collateral Security Preparation Fee

$100

Payable when taking security over a new collateral security property on application.

Telegraphic Transfer Fee

$30

Payable if money lent is telegraphically transferred within Australia.

Monthly Fee

$0/month

No monthly fee for certain products.

Loan Finalisation Fee

$345

Charged upon finalisation of the loan.

Direct Debit Dishonour Fee

$10

Charged if a direct debit is dishonoured.

Redraw Administration Fee

$20

Charged if redraw is requested while not meeting package eligibility criteria and not completed online.

Discharge of Mortgage

$350

For the preparation of a discharge of mortgage.

Break Cost Fee

Variable

Applies to fixed rate loans if a 'Break Event' occurs.

Portability Fee

$300

Charged when changing the security against an existing loan without altering the loan amount or terms.

Overseas ATM Withdrawal Fee

$5.00 plus conversion fee

Charged for overseas ATM or counter withdrawals.

Annual Fee (Platinum)

$125.00/year

Annual fee for Platinum Visa card.

Inactive Account Administration Fee

$20.00 per half year/year

Charged for inactive accounts.

Fees subject to change. Refer to lender documentation for current rates.

Eligibility Criteria

People's Choice and Heritage offer home loans to individuals who meet specific age, residency, and financial criteria, ensuring accessibility for a wide range of borrowers in Australia and New Zealand.

Must be at least 18 years old.

Must be a citizen or permanent resident of Australia or New Zealand.

Must provide two recent payslips or a Centrelink income statement.

Must submit a tax return or group certificate for the last financial year.

Must provide last three bank statements.

Must have a credit history that meets lending criteria.

Loan-to-Value Ratio (LVR) must be 80% or less to avoid Lenders Mortgage Insurance (LMI).

For investment loans, maximum LVR is 90%.

Must provide details of assets such as car, boat, or shares.

Must provide details of liabilities including credit card balances and loans.

Must be a natural person, not a legal entity.

Important Notes

LMI is required if the deposit is less than 20%.
Eligible for the Australian Government 5% Deposit Scheme for first home buyers.
Maximum LVR for owner-occupied loans is 95% with LMI.
Branch closures may affect those unfamiliar with digital banking.

People's Choice and Heritage Home Loan Pros & Cons

Our expert take on whether People's Choice and Heritage is right for you

Pros

+Rates below market average, offering substantial savings
+No transaction fees on certain accounts
+Unlimited additional repayments allowed
+Family Guarantee options available
+Fee – free and unlimited transactions for Dream Fund account

Cons

–Limited branch access due to closures
–Reports of poor customer service
–High discharge fee for mortgage
–Break costs for fixed rate loans

Best For

Borrowers seeking low interest rates
Homeowners wanting to make unlimited additional repayments
Families needing a Family Guarantee option
Customers preferring fee-free transactions

Not Ideal For

Customers needing extensive in-person banking services
Individuals requiring exceptional customer service

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Bheja Verdict: People's Choice and Heritage offer competitive home loan rates with significant savings potential, but may fall short on customer service and branch accessibility.

Expert Secrets (Why Use Us?)

Insider knowledge about People's Choice and Heritage that most borrowers don't know

LMI Cost Examples

1For a $500,000 loan at 85% LVR, LMI costs $6,000.

2At 90% LVR, the LMI for a $500,000 loan is $12,500.

3A $500,000 loan at 95% LVR incurs an LMI of $21,000.

4For a $750,000 loan at 85% LVR, LMI costs $9,000.

Fee Waivers

Currently, no specific fee waivers are advertised. However, inquire directly with the bank about potential waivers for bundled services or long-term customers.

Offset Benefits

While specific offset benefits are not detailed, using an offset account can reduce interest paid over the loan term. For example, maintaining a $20,000 balance in an offset account on a $500,000 loan could save approximately $1,000 annually in interest, assuming a 5% interest rate.

Admin & Logistics (The Help Desk)

Everything you need to manage your loan

Application Process

4 Steps

Complete the Discharge Form Checklist: Obtain and fill out the discharge form checklist provided by People's Choice or Heritage. Ensure all required information is accurate and complete. (Tip: Double-check the checklist to avoid missing any crucial details.)

Submit the Form and Pay Fees: Submit the completed discharge form along with the $350 discharge fee. Additional fees may apply depending on your specific situation. (Tip: Ensure all fees are paid upfront to prevent processing delays.)

Await Processing by the Discharge Team: Once submitted, the discharge team will process your request. This may involve verifying details and coordinating with other parties involved in the settlement. (Tip: Keep in touch with customer service for updates on your discharge status.)

Receive Confirmation of Discharge Completion: After processing, you will receive confirmation that your mortgage has been discharged. This will include any final documentation needed for your records. (Tip: Store all documents safely for future reference.)

Processing Times

Discharge Process10-14 business days

Required Documents

Discharge Form

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Pro Tips

Request the discharge at least 2 weeks before your planned settlement date to ensure timely processing.
Contact customer service at 13 14 22 for any questions or clarifications during the process.
Review all documents carefully before submission to avoid errors.
Consider negotiating any additional fees with your lender if possible.
Be aware of any recent rate changes that might affect your discharge or future loans.

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Frequently Asked Questions

The approval process typically involves a 90-day 'Approved Period' from the date the completed rate lock form is received. It's important to ensure all your documents are in order to avoid delays.