What are the break costs for a fixed-rate loan with People First and Heritage Bank?

Break costs can apply if you pay off a fixed-rate loan early. It's important to discuss these potential costs with your loan officer to fully understand the implications.

Why are some People First and Heritage Bank branches closing?

The closure of branches, including 12 former Heritage Bank locations, is part of a shift towards lending and advice centers, which aim to provide more personalized support.

How much will I pay monthly for a $500,000 loan at 5.99% over 30 years?

For a $500,000 loan at 5.99% over 30 years, your monthly repayment would be $2,995, with total interest amounting to $578,034.

What is the discharge fee for a mortgage with Heritage Bank?

Heritage Bank charges a $350 discharge fee for the preparation of a discharge of mortgage. Make sure to factor this into your plans if you're considering paying off your loan early.

How long does it take to discharge a loan with Heritage Bank?

Heritage Bank requires at least 20 working days to process a loan discharge, so plan accordingly if you're looking to pay off your mortgage.

Can I save money by refinancing to People First and Heritage Bank?

Yes, refinancing can lead to savings. For example, a $1,000,000 loan offers $332 in monthly savings, totaling $119,377 over the loan term compared to market averages.

What support does People First Bank offer for first home buyers?

People First Bank supports first home buyers with government schemes and grants, including eligibility for the Australian Government 5% Deposit Scheme for eligible single parents.

Are there any fees I should be aware of when taking a loan with People First and Heritage Bank?

Aside from potential break costs for fixed-rate loans, there's a high discharge fee of $350. It's essential to review all fees with your loan officer.

How does the FASTRefi® process work with Heritage Bank?

Heritage Bank's FASTRefi® streamlines refinancing by allowing existing loans to be paid out before settlement, making the process quicker and more efficient.

UPDATED JUL 7, 2026

People First and Heritage Bank Home Loans: The 2026 Review

Award-winning value and support for first home buyers with competitive rates. Watch out for the high discharge fee. Ready to explore your options?

Bheja Verdict

Very Good

4.1/5

✓

Highly competitive rates across products

✓

Great features: extra repayments, offset account

Check Eligibility

People First and Heritage Bank Home Loans At a Glance

🏷️Best Rate Available

5.99%

Variable • Owner Occupied

💳Application Fee

$100

Upfront fee applies

📅Monthly Fee

Ongoing service fee

Loan Range:$20K - $100.0M

LVR:Up to 98%

Products:89 variations

Offset Account:Available

Current People First and Heritage Bank Home Loan Rates

Last updated: July 2026

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Average Rate: 7.11%
Best Rate: 6.09%
Monthly Payment: $3,027

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Sort By

Basic Variable Home Loan
People First and Heritage Bank
20%-30% DepositOffsetRedraw
6.09%
Interest Rate
Variable
6.10%
Comparison Rate*
$3,027
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Basic Variable Home Construction
People First and Heritage Bank
20%-30% DepositOffset
6.09%
Interest Rate
Variable
6.10%
Comparison Rate*
$3,027
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Discount Variable - Owner Occupied
People First and Heritage Bank
20%-30% DepositRedraw
6.09%
Interest Rate
Variable
6.10%
Comparison Rate*
$3,027
per month
Principal And Interest
Check Eligibility
Fees:
Application
$250Discharge $345+ other fees may apply
Basic Variable Home Loan
People First and Heritage Bank
5%-20% DepositOffsetRedraw
6.49%
Interest Rate
Variable
6.49%
Comparison Rate*
$3,157
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Basic Variable Home Construction
People First and Heritage Bank
5%-20% DepositOffset
6.49%
Interest Rate
Variable
6.49%
Comparison Rate*
$3,157
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Discount Variable - Owner Occupied
People First and Heritage Bank
10%-20% DepositRedraw
6.49%
Interest Rate
Variable
6.49%
Comparison Rate*
$3,157
per month
Principal And Interest
Check Eligibility
Fees:
Application
$250Discharge $345+ other fees may apply
Basic Variable Home Loan
People First and Heritage Bank
4%-20% DepositOffsetRedraw
8.18%
Interest Rate
Variable
8.18%
Comparison Rate*
$3,732
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Basic Variable Home Construction
People First and Heritage Bank
4%-20% DepositOffset
8.18%
Interest Rate
Variable
8.18%
Comparison Rate*
$3,732
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Discount Variable - Owner Occupied
People First and Heritage Bank
Min 5% DepositRedraw
8.19%
Interest Rate
Variable
8.19%
Comparison Rate*
$3,735
per month
Principal And Interest
Check Eligibility
Fees:
Application
$250Discharge $345+ other fees may apply
Home Build Access (HBA) SIL
People First and Heritage Bank
Min 2% Deposit
8.80%
Interest Rate
Variable
7.96%
Comparison Rate*
$3,951
per month
Principal And Interest
Check Eligibility

People First and Heritage Bank Product Statistics

Real-time insights and market analysis

People First and Heritage Bank offers 17 home loan products across 89 variations, the average variable rate is 7.06% p.a., the best available rate is 5.99% p.a..

Average Variable Rate

7.06%

50 products

Average Fixed Rate

6.61%

39 products

Best Available Rate

5.99%

Variable • Owner Occupied • P&I

Total Products

89 variations

Fee Summary

Application Fee

$100 - $250

Monthly Fee

Discharge Fee

$345 - $350

Late Payment Fee

$10 - $70

Key Features

Across People First and Heritage Bank's range: 22 include an offset account, 73 offer redraw, 89 allow extra repayments, 73 support split loans.

Offset Account

25%

Redraw Facility

82%

Extra Repayments

100%

Split Loan

82%

Product Ranges

People First and Heritage Bank's interest rates range from 5.99% to 9.29% p.a., maximum LVR from 10% to 98%, loan amounts span $20,000 to $100,000,000.

Interest Rates5.99% — 9.29%

Max LVR10% — 98%

Loan Amount$20K — $100.0M

Disclaimer: The key features displayed highlight what's available across the lender's home loan range. Individual products and variations may differ. Use the product table to search for a loan with the specific features you're looking for.

How People First and Heritage Bank Compares

FEATURE	People First and Heritage Bank	Australian Mutual Bank LTD	Hume Bank	Fire Service Credit Union	Newcastle Permanent Building Society
Best Variable Rate	5.99%	5.64%	5.99%	5.89%	5.99%
Best Fixed Rate (3yr)	6.29%	6.14%	6.39%	—	6.39%
Application Fee	$100BEST	$250	$199	$150	$350
Monthly Admin Fee	$8	$0	$0	$0	$0
Offset Account
Redraw Facility
Product Variations	89	182	115	5	109

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Bheja Insight: People First and Heritage Bank offers offset accounts like most community-owned lenders, helping reduce interest while keeping funds accessible.

About People First and Heritage Bank

Company overview and contact information

People First and Heritage Bank, established in 1875, is a community-owned financial institution resulting from the merger of People's Choice and Heritage Bank in March 2023. As an Authorized Deposit-taking Institution (ADI), it operates under the regulatory oversight of APRA and holds both an Australian Financial Services License (AFSL) and an Australian Credit License (ACL). The bank is owned by its customers, ensuring that profits are reinvested into better services and products.

Offering 17 home loan products with 89 variations, People First and Heritage Bank provides rates ranging from 5.99% to 9.29%. The bank supports first home buyers through government schemes and grants, making it an attractive option for new entrants into the housing market. Their extensive branch network and online services provide stability and accessibility for customers seeking personalized lending advice.

What sets People First and Heritage Bank apart is their commitment to customer-first service and flexible financial solutions. With award-winning home loans, no ongoing fees, and flexible repayment options, they cater to a wide range of borrowers. Their focus on community ownership and customer satisfaction underscores their reputation as a reliable and supportive banking partner.

Company Details

Legal Name: People First and Heritage Bank

ABN: 11087651125

ACN: 087651125

Established: 1875

Ownership: community_owned

AFSL: 244310

Key Features

People First and Heritage Bank offer a range of flexible home loan features designed to provide cost savings and convenience, such as unlimited extra repayments and personalised service options.

Offset Account

Link your loan and transaction account to reduce the interest and time taken to pay off your loan. This feature allows you to use your savings to offset your loan balance, potentially saving thousands in interest over the life of your loan.

Unlimited Extra Repayments

Enjoy the freedom to make unlimited extra repayments, helping you reduce your loan term and save on interest. This feature is available on both variable and select fixed-rate products, offering significant flexibility in managing your loan.

Construction Loan Option

Available on the Basic Variable product, the construction loan option supports borrowers looking to build a new home. This feature provides tailored financial solutions throughout the construction phase, ensuring smooth progress from start to finish.

Program One to One

This program offers a higher level of personalised service by assigning a dedicated Relationship Manager to members with significant business. It ensures a single point of contact for all financial service needs, enhancing the overall customer experience.

Online Banking Features

Access a full suite of online banking features, including account management and online redraw. This digital convenience allows you to manage your home loan anytime, anywhere, enhancing your financial control and flexibility.

No Annual Fee Credit Card

Save $59 annually with a $0 Visa Credit Card Annual Fee. This feature provides cost savings for borrowers looking to manage their expenses efficiently without additional charges.

Family Guarantee Option

Available on select products, the Family Guarantee option helps applicants enter the property market sooner by reducing the deposit required. This feature is particularly beneficial for first home buyers.

Flexible Repayment Frequency

Choose from weekly, fortnightly, or monthly repayment options to suit your financial situation. This flexibility allows borrowers to align their loan repayments with their income schedule, ensuring easier financial management.

Interest-Only Repayment Options

Available for investors, this option allows you to pay interest only for a specified period, freeing up cash flow for other investments or expenses. It provides financial flexibility during the initial years of the loan.

Rate-Lock Facility

Lock in a competitive fixed interest rate for up to 90 days from application to funding. This feature offers certainty and protection against rate increases during the application process.

Fees & Charges

People First and Heritage Bank offer a comprehensive range of home loan products with various fees, ensuring transparency by providing detailed information on each fee type. Borrowers can expect both upfront and ongoing fees, with some variations depending on the specific product chosen.

Fee Type

Amount

Description

Valuation Fee

Variable

Payable at cost by the member for property valuation.

Solicitor's/Conveyancer Fee

Variable

Covers legal activities related to settlement, payable at cost on settlement date.

Documentation Fee

$200

Charged for additional mortgage preparation or document changes after contract issuance.

Discharge of Mortgage Fee

$350

Charged for preparing a discharge of mortgage.

Monthly Administration Fee

$8/month

Charged monthly unless waived under a package.

Direct Debit Dishonour Fee

$10

Charged for dishonoured direct debit payments.

Portability Fee

$300

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

Telegraphic Transfer Fee

$30

Payable for telegraphic transfers within Australia.

Break Cost Fee

Variable

Applies to fixed-rate loans when a 'Break Event' occurs.

Lenders Mortgage Insurance (LMI)

Variable

Payable when Loan to Value Ratio (LVR) exceeds 80%.

Replacement Card Fee

$10.00 (standard), $25.00 (express), $200.00 (emergency overseas)

Charged for replacing a lost or stolen card, with varying costs based on delivery method.

Overseas ATM or Counter Withdrawal Fee

$5.00 plus conversion fee

Charged for overseas ATM or counter withdrawals, plus a currency conversion fee.

Rate Lock Option Fee

0.15% of the total loan amount

Charged to lock in a specific interest rate prior to settlement.

Progress Draw Fee

$400

Charged for each progress draw during construction loans.

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

Eligibility Criteria

People First and Heritage Bank offers home loans to Australian and New Zealand citizens and permanent residents, focusing on community accessibility and support for first home buyers.

Must be at least 18 years old.

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

Applicants must reside in Australia at the time of application.

Lending criteria apply, including income and employment verification.

LVR must be between 70% and 98%.

LMI is required if the deposit is less than 20% or LVR exceeds 80%.

Applicants must be natural persons, not legal entities.

Eligible for Australian Government 5% Deposit Scheme for single parents and first home buyers.

Important Notes

LMI is required for loans with more than 80% LVR.
People First and Heritage Bank supports first home buyers through government schemes and grants.
Loan amounts range from $20,000 to $99,999,999.
Branch conversion to lending and advice centers may limit traditional services in some areas.

People First and Heritage Bank Home Loan Pros & Cons

Our expert take on whether People First and Heritage Bank is right for you

Pros

+Competitive interest rates below market average
+Unlimited extra repayments allowed
+$2000 cashback for first home buyers requiring LMI
+Personalized service with a dedicated Relationship Manager
+No ongoing fees and flexible repayment options

Cons

–Branch closures affecting regional access
–High discharge fee of $350
–Break costs for fixed – rate loans

Best For

First home buyers utilizing government schemes
Borrowers seeking competitive rates and savings
Customers valuing personalized service
Individuals preferring community-owned banks

Not Ideal For

Customers needing extensive branch access
Borrowers sensitive to high discharge fees

💡

Bheja Verdict: People First and Heritage Bank offers competitive home loan rates with strong community support, ideal for borrowers seeking personalized service and savings.

Expert Secrets (Why Use Us?)

Insider knowledge about People First and Heritage Bank 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 increases to $12,500.

3A $500,000 loan at 95% LVR incurs $21,000 in LMI costs.

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

Fee Waivers

Fee waivers available for certain credit card products at Heritage Bank, including Platinum and Classic cards.

Offset Benefits

Offset accounts can significantly reduce interest payments over the life of the loan by offsetting the loan balance with the account balance.

For example, maintaining a $20,000 balance in an offset account on a $500,000 loan can save thousands in interest over the loan term.

Offset accounts provide flexibility in managing cash flow while reducing interest costs.

Admin & Logistics (The Help Desk)

Everything you need to manage your loan

Application Process

5 Steps

Submit Discharge Request: Contact Heritage Bank to submit your discharge request. This can typically be done online or through a customer service representative. (Tip: Ensure all your personal and loan details are accurate to avoid delays.)

Pay Discharge Fee: Pay the $350 discharge fee required for processing the discharge of mortgage. (Tip: Confirm payment methods accepted by the bank to expedite the process.)

Coordinate with Solicitors/Conveyancers: Engage with your solicitor or conveyancer to handle the settlement process. They will liaise with Heritage Bank and any other involved parties. (Tip: Choose a solicitor or conveyancer experienced in property settlements for a smoother process.)

Allow Processing Time: Wait for at least 20 working days for the discharge process to be completed by Heritage Bank. (Tip: Monitor the progress and maintain communication with your bank and solicitor.)

Final Settlement: Ensure all documents are prepared for the final settlement. Your solicitor will coordinate the transfer of funds and property title. (Tip: Double-check all documents for accuracy before the settlement date.)

Processing Times

Discharge Process20 working days

💡

Pro Tips

Request the discharge at least 4 weeks before your planned settlement date to avoid delays.
Keep a record of all communications with the bank and your solicitor.
Ensure all outstanding fees and charges are cleared before initiating the discharge process.
Contact Heritage Bank's customer service at 13 11 82 for any questions or clarifications.
Verify if there are any fee waivers or discounts available for early discharge.

People First and Heritage Bank Mortgage Calculator

Estimate your repayments using current People First and Heritage Bank home loan rates

Over 30 years, borrowing $480,000 at 5.99%, total cost including interest and known fees could be around $1,035,463. Estimated monthly repayment: $2,874.76.

Home loan option

Property price

Your deposit

Loan term (years)Repayment frequency

Estimated total cost over 30 years

$1,035,463

Estimated repayment

$2,874.76

monthly repayment

Amount you borrow: $480,000 · At 5.99% · Variable — can change with the market

This loan can be split between fixed and variable. This estimate uses one option only.

Known fees in this estimate

Document fee: $200
Discharge fee: $350
Total ongoing fees (30 yrs): $0

How is this calculated?

Estimated total cost includes the amount borrowed, interest over the full loan term, and any upfront, ongoing, and discharge fees published by the lender. It does not include stamp duty, LMI, or savings from an offset account.

The revert rate is the rate your loan may switch to when a fixed, introductory, or interest-only period ends. Where a lender hasn't published this rate, we use an estimate.

Cost breakdown

Amount you borrow: $480,000
Total interest: $554,913
Upfront fees: $200
Ongoing fees: $0
Discharge fee: $350
Estimated total cost: $1,035,463

These figures are estimates only. Your actual repayments and costs may differ. Confirm all details with your lender before making a decision.
Where a lender hasn't published their revert rate (the rate that applies after a fixed, introductory, or interest-only period ends), we estimate it. Your repayments may change when this period ends.
Split loans and offset accounts aren't included in this estimate.
For product comparison and comparison rates, see the rates table above.

Still Unsure? Let a human handle it.

Not sure if People First and Heritage Bank is right for you? Our brokers can help you compare options.

Frequently Asked Questions

People First Bank has improved its lending platforms to speed up approvals, but specific timelines aren't provided. Heritage Bank offers a detailed application guide, though they also don't specify exact approval times.