Photo by Swodesh Shakya on Unsplash
From today, first home buyers keen to enter the property market can receive $2,000 back in their pocket through Heritage Bank.
Heritage Bank is offering $2,000 cashback for first home buyers on eligible Heritage Bank home loans with Lenders Mortgage Insurance (LMI).
To be eligible for the $2,000 cashback offer, first-time buyers must apply for an eligible home loan type from 1 October and let the bank know they're a first home buyer.
They then need to open a Heritage Simply Access Account or Mortgage Crusher transaction account, and their eligible home loan must settle before 28 February 2021.
Looking to compare low-rate, variable home loans? Below are a handful of low-rate loans in the market.

Smart Booster Home Loan
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.47%
Product Features
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Heritage Bank’s First Home Buyer Cashback Offer is available on a range of fixed-rate and variable home loans, giving eligible borrowers the option to access features such as:
- No monthly or redraw fees
- Free online redraw facility
- Optional offset account
- The ability to make increased or lump sum payments
Heritage Bank CEO Peter Lock said the special cashback offer will help first-time buyers struggling financially due to COVID.
“Buying your first home is a huge financial commitment, made even tougher at the moment because of the impacts of COVID," Mr Lock said.
“Whether you’re looking to buy a home to live in, or as a means to set yourself up for the future, a helping hand is extremely valuable for first-time buyers.
“This cashback offer provides a boost specifically for first home buyers requiring Lenders Mortgage Insurance and is available to both owner-occupiers and investors. It’s a great kick-start for people getting into the market.”
Who else is offering mortgage discounts?
Heritage Bank's cashback offer comes off the back of a handful of other lenders recently announcing similar offers in a bid to compete for home loan customers.
ME Bank
On Monday, ME Bank announced it would be offering eligible first home buyers access to a 25% discount on Lenders Mortgage Insurance (LMI), combined with cutting variable rates by up to 182 basis points.
LMI is usually required to be paid by borrowers who have a deposit of less than 20% and can amount to thousands of dollars.
Borrowers can apply until 20 November 2020 and need to settle by 26 February 2021.
Virgin Money
Virgin Money also recently announced it would be making LMI $0 for eligible borrowers.
The offer applies to first home buyers and those buying a new home.
To be eligible, borrowers must have a 15% deposit and be making principal and interest repayments.
Borrowers have until 29 November to apply and must have their loan settled by 30 May 2021.
NAB
Big four bank NAB also recently announced it would be offering $2,000 cashback offer for refinancers looking to refinance before 31 January 2021 for the following loans:
- NAB Base Variable Rate Home Loan
- NAB Tailored Home Loan
- NAB Tailored Home Loan (Fixed)
- NAB Tailored Home Loan (Choice Package)
- NAB Tailored Home Loan (Fixed, Choice Package)
To be eligible, refinancers must be refinancing a mortgage of at least $250,000 from a lender other than NAB, UBank, Medfin or Advantage home loans.
This offer isn't available for borrowers using the First Home Loan Deposit Scheme.
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
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