Heritage Bank Accreditation Presentation

Agenda Who is Heritage Bank? We are here to help Residential mortgages Product range Policy guidelines Tips and hints The Heritage difference The Broker Website Service levels Application process

Who is Heritage Bank? Australia’s largest customer-owned bank A mutual organisation with a “People first” philosophy Head office based in Toowoomba, Queensland Contact Centre located in Australia Over 140 years in business Approximately $8 billion in assets Broker support staff based in Brisbane, Sydney, Melbourne, Adelaide and Perth Loans sold into every State and Territory in Australia

Welcome to Heritage Heritage offers a full range of financial services including: Residential loans Personal banking (visa, transaction accounts, personal loans) Investments (term deposits, savings) Insurance (motor vehicle, landlords, residential, mortgage repayment insurance) Business Banking Foreign exchange Excellent customer service Queensland-based Contact Centre available 6 days a week Internet banking Telephone & Mobile banking Bank@Post (over-the-counter transactions) at Australia Post outlets Access to more than 3,000 ATMs nationwide

Residential Mortgages Purchases Refinance Investment Construction Land purchase Debt consolidation Further advances Bridging finance Line of credit

Loan Product Options

Fixed Rate Home Loan This loan is perfect for... A Fixed Rate home loan is attractive to borrowers and/or first homebuyers to provide them protection against interest rate rises. Our fixed rate loans are packed with features like unlimited additional repayments and redraws plus more. Features $8 monthly administration fee (waived for loans in a package) Unrestricted redraw facility Option to make additional repayments with no penalty Partial offset account available Guaranteed interest rate and set repayment for up to 5 years at a time  Interest only term for investment loans up to 5 years available Rate guarantee available at 0.15% of basic loan amount Construction loan available Refix at end of fixed term at no cost Reverts to Standard Variable rate when fixed term expires Valuation fee on first security paid by Heritage up to $330^ Requirements $600 application fee Max 95% LVR – investment loans max 90% LVR Minimum $20,000 loan amount Disclaimers: ^ Where a valuation is required and only one property is offered as security Heritage will pay for the valuation, up to a maximum cost of $330. Any amount over $330 is to be borne by the borrower. In addition, if two or more securities are involved, the valuation cost of the subsequent securities is to be borne by the borrower.

Discount Variable Home Loan This loan is perfect for .... If your clients are looking for a home loan with a low rate and basic features, the Discount Variable home loan is hard to beat. With an ongoing discounted interest rate and no monthly administration fee, this loan is perfect for people who are price driven. Features Low rate home loan No monthly administration fee Further advances available Redraw facility available Option to make additional or lump sum repayments without penalty First valuation fee paid by Heritage up to maximum $330^ No offset account available Switching available 30 years maximum loan term Interest only term for investment loans up to 5 years available Requirements $600 application fee Max 95% LVR – investment loan max 90% LVR Minimum $150,000 loan amount Disclaimers: ^ Where a valuation is required and only one property is offered as security Heritage will pay for the valuation, up to a maximum cost of $330. Any amount over $330 is to be borne by the borrower. In addition, if two or more securities are involved, the valuation cost of the subsequent securities is to be borne by the borrower.

Standard Variable Home Loan This loan is perfect for .... The Standard Variable home loan is a great option for clients who want to make extra repayments and pay out their loan in the medium term. Features 100% offset account available $8 monthly administration fee (waived for loans in a package) Further advances available Redraw facility Option to make additional repayments/lump sum repayments without penalty Interest only term for investment loans up to 5 years available First valuation fee paid by Heritage up to a maximum $330^ 30 years maximum loan term Flexible repayment frequency Ability to skip repayments if additional repayments has been made Switching available Requirements $600 application fee Max 95% LVR – investment loan max 90% LVR Minimum $20,000 loan amount Disclaimers: ^ Where a valuation is required and only one property is offered as security Heritage will pay for the valuation, up to a maximum cost of $330. Any amount over $330 is to be borne by the borrower. In addition, if two or more securities are involved, the valuation cost of the subsequent securities is to be borne by the borrower.

Home Advantage Package This loan is perfect for .... Our all-in-one Home Advantage Package is ideal if your client want to have all their main banking needs in one package with one annual fee. Features Choose from our variable rate, fixed rate or living equity home loans Competitive interest rates No application fee – low annual package fee of $350 No monthly administration fee Additional repayments welcome without penalties Free redraw facility No application fee on further advances Loan splits available Valuation fee on first security paid by Heritage up to maximum $330^ Construction loan available Requirements Max 95% LVR on Variable & Fixed rate products, 85% LVR on Living Equity – investment loans max 90% LVR with Variable, Fixed rate & Living Equity products. Must borrow at least $150,000 within the package and hold at least one of the three Home Advantage loan products Must hold any qualifying Visa card Annual package fee applies Disclaimers: ^ Where a valuation is required and only one property is offered as security Heritage will pay for the valuation, up to a maximum cost of $330. Any amount over $330 is to be borne by the borrower. In addition, if two or more securities are involved, the valuation cost of the subsequent securities is to be borne by the borrower.

Home Advantage Package continued Visa Credit card No annual fee Transactional account $0 monthly account keeping fee Unlimited free EFTPOS and Network ATM transactions Free internet, mobile and phone banking Visa debit card available Transact through Bank@Post Insurances Up to 5% off base premium for most insurances Other Benefits 100% offset account available on variable loans Partial offset account available on fixed rate loans

Bridging Loan This loan is perfect for .... This loan is for clients who have found a new house to purchase or are in the process of constructing a new house but haven’t sold their existing property yet. The Bridging Loan offers the simple solution of being able to move into their new home while their old home is still on the market. Features Competitive interest rate No repayments necessary until end of loan term No monthly administration fee No early termination fee No servicing assessment required on Bridging loan Interest can be capitalised Additional or lump sum repayments welcome without penalty Valuation fee on first security paid by Heritage up to maximum $330^ Normal LVR requirements apply to new home Bridging loan can be combined with any other Heritage loan type Requirements Application fee of $900 Must be repaid within 12 months Maximum 72% LVR (on property to be sold) Standard term of 6 months Disclaimers: ^ Where a valuation is required and only one property is offered as security Heritage will pay for the valuation, up to a maximum cost of $330. Any amount over $330 is to be borne by the borrower. In addition, if two or more securities are involved, the valuation cost of the subsequent securities is to be borne by the borrower.

Let’s look at how a Bridging Loan works.... Current home value $350,000 72% valuation (Bridging Loan) $252,000 Balance of current home loan -$192,000 Equity for purchase $60,000 New home purchase cost $400,000 Costs to purchase new home $20,000* Less Equity from Bridging Loan -$60,000 New home loan required $360,000 Disclaimers: * This is an approximate amount and may change depending on your clients personal situation.

Family Guarantee Overview The Family Guarantee loan allows people to help their family members to enter the property market. Heritage’s Family Guarantee works by splitting the total amount across two loans – one secured by the property being purchased, and the second loan partially secured by an immediate family members’ property as guarantors. This structure reduces the LVR to 80% and helps the borrowers avoid the need for Lenders Mortgage Insurance, thus making the loan more affordable. It also helps limit the amount that the immediate family member/s are guarantors for, providing them with some peace of mind. Features Immediate family can use equity in their own property to provide additional security for the loan amount. The loan to value ratio is reduced potentially saving the customer a significant amount of money avoiding the need to pay Lender’s Mortgage Insurance. The loan is available to both owner occupiers and investors, and is not restricted to First Home Buyers. First Home Buyers who are also owner occupiers may be eligible for up to $50,000 cash additional to the borrowings for home improvements if covered by the family members guarantee. This is unique to Heritage. A few minor debts may be consolidated if they are less than 5% of the purchase price. Can be used to buy a home or invest in residential property. Available products All variable & fixed rate products are available including our Discount Variable Rate Special Offer Home Loan & Building loan (subject to meeting the products eligibility requirements i.e. minimum loan amounts). Excludes Line of Credit loans. Refinances can be considered providing there is no increase to the existing loan amounts or guarantor’s existing exposure.

Other product details Product Max LVR Owner Occupied Max LVR Investment Standard Variable, Fixed, Discount Variable, Home Advantage Package 95% (including LMI) 90% (including LMI) Refinance Living Equity 85% (including LMI) Debt Consolidation 85% (plus LMI) Bridging Finance 72% Line of Credit $10 administration fee Interest only repayments for the first 10 years Up to 5 sub-accounts available Additional repayments can be made without penalty Minimum credit limit of $20,000 Maximum credit limit of $500,000 Available funds may be drawn at any time up to the approved credit limit Funds may be accessed using a Heritage Visa Debit card

Policy Guidelines Maximum net surplus ratio allowable 95% Overtime and commission income is an acceptable form of income. Conditions apply. Third party guarantor loans will only be acceptable for husband and wife structures Loan qualifying rate is 7.15% Loan Type Commitment Calculation New Mortgage Loans (fixed / variable)* Higher of the Qualifying Rate or actual rate + 2% Existing Variable rate Existing Fixed rate (within 24 months of expiring) Existing Fixed rate (with more than 24 months remaining) Interest Only Loans Based on the principal amount owing, amortised over the remaining principal & interest period applicable to the loan. The maximum principal & interest period (or where the remaining principal & interest term is unascertainable) is to be 25 years. Line of Credits Based on the facility Limit, amortised over the remaining principal & interest period applicable to the loan. The maximum principal & interest period (or where there isn't a principal & interest period or the remaining principal & interest term is unascertainable) is to be 20 years. * New mortgage loans / new lending are defined as loans which have not been funded, irrespective of the financier or purpose of the loan.

Heritage Loan Application Process Does the application have sufficient information ? Application submitted electronically to Heritage Bank. Application reviewed to ensure minimum documents received. Application Assessed by MPO. Yes No Application withdrawn after 5 days. More information requested from Broker. Application held for 5 working days then withdrawn. Does the application meet guidelines? Application declined – notification Issued No Yes File settled Formal documentation (48 hours) Formal approval (48 Hours) Conditional Issued. Valuation ordered.

Tips & Hints Ensure home loan application has been completed in full and signed in the correct places. Ensure the Package Acknowledgement Form, Privacy Acknowledgement and Consent Form and Rate Guarantee Acknowledgement Form are included if applicable. For refinance applications you will need to provide the outgoing financial institutions most current refinance form which has been signed by your client. Ensure supporting information is legible and corresponds to the checklist on the application form. Ensure the purpose of the loan is clearly stated and a brief summary of the loan is provided.

The Heritage Difference Attractive product proposition & features Our Business Development Managers are experienced lenders not just salespeople Direct access to loan assessors and processors Bridging finance is serviced on residual end debt No credit scoring of home loan applications <80% LVR

Visit https://brokers.heritage.com.au Our Broker Website Our broker website has all the information you need including: View detailed information on each of our Home Loan products and current interest rates. A range of calculators to help you work out which loan is right for your client. Track the progress of your loans with the Loan Tracker and view the current processing timeframes. All the forms and polices you need to complete an application for your client. Contact details for our team of Business Development Managers nationwide. Visit https://brokers.heritage.com.au

Service Levels Receipt of application Same day Conditional Approval 48 hours Formal Approval – following receipt of acceptable valuation and all conditions satisfied Offer documentation Settlement 4 working days

Contacts – New South Wales Paul Moses, State Broker Distribution Manager Phone: (02) 8843 8800 Mobile: 0415 253 673 Fax: (02) 9635 3299 Email: moses.p@heritage.com.au Office Address Suite 2, Level 6, KPMG Building 111 Philip Street Parramatta NSW 2150 Jeff Thomas, Business Development Manager Phone: (02) 8843 8800 Mobile: 0404 847 381 Fax: (02) 9635 3299 Email: thomas.j@heritage.com.au Supporting Documents Email: nswbrokerscan@heritage.com.au Fax: (02) 9635 3299 Gerald Allan, Business Development Manager Phone: (02) 8843 8800 Mobile: 0484 814 818 Fax: (02) 9635 3299 Email: allan.g@heritage.com.au Credit Assessment Phone: (02) 8843 8800 Fax: (02) 9635 3299 Broker Website https://brokers.heritage.com.au

Contacts – Northern Territory Robin Rose, State Broker Distribution Manager Phone: (07) 3334 9818 Mobile: 0417 752 621 Fax: (07) 3334 9820 Email: rose.r@heritage.com.au Office Address Level 6, Petrie House 80 Petrie Terrace Milton Qld 4064 Ken Sloane, Business Development Manager Phone: (07) 3334 9888 Mobile: 0417 703 501 Fax: (07) 3334 9820 Email: sloane.k@heritage.com.au Supporting Documents Email: qldbrokerscan@heritage.com.au Fax: (07) 3334 9820 Credit Assessment Phone: (07) 3334 9800 Fax: (07) 3334 9820 Broker Website https://brokers.heritage.com.au

Contacts – Queensland Robin Rose, State Broker Distribution Manager Phone: (07) 3334 9818 Mobile: 0417 752 621 Fax: (07) 3334 9820 Email: rose.r@heritage.com.au Office Address Level 6, Petrie House 80 Petrie Terrace Milton Qld 4064 Andrew Galloway, Business Development Manager Phone: (07) 3334 9836 Mobile: 0417 719 527 Fax: (07) 3334 9820 Email: galloway.a@heritage.com.au Supporting Documents Email: qldbrokerscan@heritage.com.au Fax: (07) 3334 9820 Ken Sloane, Business Development Manager Phone: (07) 3334 9888 Mobile: 0417 703 501 Fax: (07) 3334 9820 Email: sloane.k@heritage.com.au Credit Assessment Phone: (07) 3334 9800 Fax: (07) 3334 9820 Troy Cornelius, Business Development Manager Phone: (07) 3334 9806 Mobile: 0448 116 497 Fax: (07) 3334 9820 Email: Cornelius.t@heritage.com.au Broker Website https://brokers.heritage.com.au

Contacts – South Australia Mary Tarling, Business Development Manager Mobile: 0438 699 050 Fax: 1800 220 546 Email: tarling.m@heritage.com.au Office Address PO Box 506 Prospect East SA 5082 Supporting Documents Email: broker@heritage.com.au Fax: 1800 220 546 Credit Assessment Phone: 1800 627 499 Fax: 1800 220 546 Broker Website https://brokers.heritage.com.au

Contacts – Tasmania Arthur Karvelas, State Broker Distribution Manager Phone: (03) 9826 8077 Mobile: 0418 350 312 Fax: (03) 9826 8399 Email: karvelas.a@heritage.com.au Office Address Suite 11c Professional Suites Como Centre 299 Toorak Road South Yarra Vic 3141 Scott Cornford, Business Development Manager Phone: (03) 9826 8077 Mobile: 0408 186 456 Fax: (03) 9826 8399 Email: cornford.s@heritage.com.au Supporting Documents Email: broker@heritage.com.au Fax: 1800 220 546 Credit Assessment Phone: (03) 9826 8077 Fax: (03) 9826 8399 Broker Website https://brokers.heritage.com.au

Contacts – Victoria Arthur Karvelas, State Broker Distribution Manager Phone: (03) 9826 8077 Mobile: 0418 350 312 Fax: (03) 9826 8399 Email: karvelas.a@heritage.com.au Office Address Suite 11c Professional Suites Como Centre 299 Toorak Road South Yarra Vic 3141 Scott Cornford, Business Development Manager Phone: (03) 9826 8077 Mobile: 0408 186 456 Fax: (03) 9826 8399 Email: cornford.s@heritage.com.au Supporting Documents Email: vicbrokers@heritage.com.au Fax: (03) 9826 8399 Tanya Brimblecombe, Business Development Manager Phone: (03) 9826 8077 Mobile: 0419 772 568 Fax: (03) 9826 8399 Email: brimblecombe.t@heritage.com.au Credit Assessment Phone: (03) 9826 8077 Fax: (03) 9826 8399 Broker Website https://brokers.heritage.com.au

Contacts – Western Australia Kelvin Tan, Business Development Manager Mobile: 0477 979 770 Fax: 1800 220 546 Email: tan.k@heritage.com.au Office Address PO Box 586 Willetton WA 6955 Supporting Documents Email: wabrokerscan@heritage.com.au Fax: 1800 220 546 Credit Assessment Phone: (02) 8843 8800 Fax: (02) 9635 3299 Broker Website https://brokers.heritage.com.au

All loans subject to application and approval All loans subject to application and approval. Fees, charges and conditions apply. Information correct as at 18 May 2017 and subject to change without notice. Heritage Bank Limited ABN 32 087 652 024 AFSL 240984 Australian Credit Licence 240984