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Home loans for people and the planet – Heritage Bank review

A home loan with Heritage Bank changes lives. Chat with us to learn more about a mortgage with an ethical bank like Heritage Bank.
Credit: Sue Zeng, Unsplash.

“Go woke go broke” suggests that when businesses do good for the community, they stop making a profit. But who says that’s true?

When done well, businesses that combine profit and charity can lead the next generation of work. We live in an age where changes like this aren’t just pleasant – they’re needed. Global warming is imminent and bound to hurt our ability to live if we don’t act now. Today, more people than ever are suffering in health and finances due to the pandemic. 2020 has shown us that we need to change the system for the better, and we can.

We want the businesses that are for-people to be amply rewarded. That’s why we’ve been reviewing banks on their mortgage rates as well as their impact on the community and environment. In this article, we’ve checked out the Heritage Bank home loan.

A Heritage Bank home loan is one way you can choose businesses that serve the community, not just themselves. Talk to us for more information about a home loan with them or another bank with a conscience.

Read on for the bank’s:

Mutual banks do it better

Heritage Bank is a mutual bank, meaning they are owned by customers rather than shareholders. As a result, they aren’t trying to maximise profit for their shareholders. Instead, they are dependent on their customers’ patronage, making them obliged to keep you happy.

Mutual banks will align with most customers’ values, simply because it’s in their interest. Their profits are tied to competitive rates and lower fees. Customers of mutual banks have been consistently more satisfied than retail bank customers, according to Roy Morgan.

If you’re looking for a lender with those values, Heritage Bank might be the one for you. They are Australia’s largest mutual bank, and very active in the community. In 2018, they established their own charity foundation, which provides grants for not-for-profits. They regularly participate in appeals run by charity, and run their own fundraisers.

A bank that invests in your future

Choosing an environmentally friendly bank is an important choice for Australians. Many of our banks continue to fund fossil fuel projects. As we’ve known about the dangers of climate change for decades, banks have no excuse not to divest their funds.

A home loan with a bank deep in fossil fuels will cost our future. Talk to us about borrowing responsibly.
Carbon emissions from the projects funded by the big four since 2016

Market Forces states that Heritage Bank does not invest in any coal, gas or oil companies. Recently, the bank released a ‘Environmental and Social Governance Statement’ to show their commitment to protecting the environment. They also plan to offer eco-friendly products and services. This makes Heritage Bank an attractive choice for banking responsibly.

Home loan rates

Banking responsibly should not cost you any extra. Here are the pros and cons of a home loan with Heritage Bank.

Pros
  • Range of home loans. There is a good chance you'll find a plan that suits your situation
  • 100% offset account and redraw facilities available on some of their loans
  • Low deposits are suitable on many of their home loans
  • High Loan-to-Value Ratio (LVR) on most loans, ranging from 85-95%. Loan-to-Value Ratio indicates the percentage of your property value that the bank is willing to lend (e.g. loaning up to 85% of a property valued at $250K is $212.5K)
  • Ability to make extra repayments.  Their Line of Credit (Interest Only) home loan allows unlimited extra repayments
  • Offer guarantor loans, with debt consolidation available
Cons
  • Ongoing and discharge fees on several of their home loans
  • Difficult for customers with bad credit history. If you're having this problem, come chat to us for some assistance. Having a broker means you don't have to deal directly with the bank
  • Not all offers have offset accounts, which may be difficult for some customers

Our conclusion

Choosing a bank for your home loan is one of many decisions that can change the planet. When we reward businesses that do good in the community, it raises the bar for the others lagging behind.

Heritage Bank may be the lender for you. However, you shouldn’t have to pay extra for choosing a responsible bank. You also shouldn’t have to go through hell just to find the right home loan plan.

A mortgage should give you options, not take them away. By going through a broker, you get a lot more choices.

With us, you are guaranteed to make a social impact. We invest up to 50% of our upfront commission into the work of one of our charity partners, such as Save the Children. This tax-deductible donation is made on your behalf.

With our customers’ help, we are building a world where businesses and communities have a common goal. Join us today to find the best home loan for you with a responsible bank.

Needing to refinance? Check out our articles on why you should refinance and how.

Disclaimer: The information provided is general in nature and does not constitute financial advice. For recommendations on your individual circumstance and requirements, have a chat with us.