1. Heritage Bank Accreditation Presentation

2. 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

3. 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

4. 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
(over-the-counter transactions) at Australia Post outlets
Access to more than 3,000 ATMs nationwide

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

6. Loan Product Options

7. 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.

8. 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.

9. 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.

10. 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.

11. 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
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

12. 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.

13. 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.

14. 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.

15. 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

16. 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.

17. 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.

18. 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.

19. 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

20. 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

21. 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

22. Contacts – New South Wales
Paul Moses, State Broker Distribution Manager
Phone: (02)
Mobile:
Fax: (02)
Office Address
Suite 2, Level 6, KPMG Building
111 Philip Street
Parramatta NSW 2150
Jeff Thomas, Business Development Manager
Phone: (02)
Mobile:
Fax: (02)
Supporting Documents
Fax: (02)
Gerald Allan, Business Development Manager
Phone: (02)
Mobile:
Fax: (02)
Credit Assessment
Phone: (02)
Fax: (02)
Broker Website

23. Contacts – Northern Territory
Robin Rose, State Broker Distribution Manager
Phone: (07)
Mobile:
Fax: (07)
Office Address
Level 6, Petrie House
80 Petrie Terrace
Milton Qld 4064
Ken Sloane, Business Development Manager
Phone: (07)
Mobile:
Fax: (07)
Supporting Documents
Fax: (07)
Credit Assessment
Phone: (07)
Fax: (07)
Broker Website

24. Contacts – Queensland Robin Rose, State Broker Distribution Manager
Phone: (07)
Mobile:
Fax: (07)
Office Address
Level 6, Petrie House
80 Petrie Terrace
Milton Qld 4064
Andrew Galloway, Business Development Manager
Phone: (07)
Mobile:
Fax: (07)
Supporting Documents
Fax: (07)
Ken Sloane, Business Development Manager
Phone: (07)
Mobile:
Fax: (07)
Credit Assessment
Phone: (07)
Fax: (07)
Troy Cornelius, Business Development Manager
Phone: (07)
Mobile:
Fax: (07)
Broker Website

25. Contacts – South Australia
Mary Tarling, Business Development Manager
Mobile:
Fax:
Office Address
PO Box 506
Prospect East SA 5082
Supporting Documents
Fax:
Credit Assessment
Phone:
Fax:
Broker Website

26. Contacts – Tasmania Arthur Karvelas, State Broker Distribution Manager
Phone: (03)
Mobile:
Fax: (03)
Office Address
Suite 11c Professional Suites
Como Centre
299 Toorak Road
South Yarra Vic 3141
Scott Cornford, Business Development Manager
Phone: (03)
Mobile:
Fax: (03)
Supporting Documents
Fax:
Credit Assessment
Phone: (03)
Fax: (03)
Broker Website

27. Contacts – Victoria Arthur Karvelas, State Broker Distribution Manager
Phone: (03)
Mobile:
Fax: (03)
Office Address
Suite 11c Professional Suites
Como Centre
299 Toorak Road
South Yarra Vic 3141
Scott Cornford, Business Development Manager
Phone: (03)
Mobile:
Fax: (03)
Supporting Documents
Fax: (03)
Tanya Brimblecombe, Business Development Manager
Phone: (03)
Mobile:
Fax: (03)
Credit Assessment
Phone: (03)
Fax: (03)
Broker Website

28. Contacts – Western Australia
Kelvin Tan, Business Development Manager
Mobile:
Fax:
Office Address
PO Box 586
Willetton WA 6955
Supporting Documents
Fax:
Credit Assessment
Phone: (02)
Fax: (02)
Broker Website

29. 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 AFSL Australian Credit Licence