Broker guide
Heritage Bank Bridging Loans for Brokers 2026
Check Heritage Bank bridging availability, borrower and security requirements, peak and end debt, sale evidence and the route to a verified lender answer.
- Published
- Updated
A new Heritage Bank bridging loan application cannot be submitted through the Heritage broker channel. Heritage has closed that channel to new business, while existing borrowers with current lending can still request top-ups through their broker.
For a client buying before selling, establish whether the file concerns retained Heritage lending or needs a different funding route. An old bridging product sheet doesn’t establish that Heritage will accept the transaction.
Heritage Bridging Status and Current Lending Route
Heritage’s broker transition notice preserves existing applications, support through settlement and post-settlement servicing. Its existing-customer top-up route requires a separate credit decision about the proposed borrowing.
The Heritage home loan matrix from 2025 describes a bridging product with a six-month maximum term. It lists a 72% maximum loan-to-value ratio (LVR), a $20,000 minimum and no regular payments required. Treat those as historical product features, not current permission to submit a new bridging application.
People First Bank is a trading name of Heritage and People’s Choice Ltd. Its broker page provides the current enquiry destination for that brand, including brokers@peopleschoice.com.au. The shared legal entity doesn’t transfer Heritage product rules or broker accreditation automatically.
People First’s former home loan document separately lists its Bridging Loan among products no longer for sale. A People First enquiry therefore isn’t evidence of a replacement bridging product.
For retained Heritage lending, send the proposed transaction to the Heritage broker team. Ask whether it can be considered under the existing-customer route and which product would apply. Keep portal access questions with the Heritage Bank broker portal guide.
Heritage Bank Borrower, Security and Sale Fit
An existing Heritage loan establishes the starting relationship, but the proposed top-up still needs an acceptable purpose and repayment plan. Describe both properties and the full funding requirement before asking for a credit assessment.
Prepare a short scenario covering the following points:
- Identify every borrower and property owner, residency status and any company or trust involved.
- State the client’s income sources, employment position, living expenses and other debts. Explain how repayments would be met while both properties are held.
- Give the purchase price, settlement deadline, deposit already paid and remaining cash contribution. Keep an emergency reserve separate from money committed to settlement.
- Identify both properties by address, type, use and ownership. Include existing mortgages, payout estimates and any other lender with security over them.
- Set out the sale plan, selling costs, expected net proceeds and expected time between settlements. Distinguish an appraisal from a signed sale contract.
Ask Heritage to confirm the accepted borrower structure and income evidence for that file. Have it confirm the permitted loan purpose, both security properties and required valuations. Record its maximum exposure, the value basis used for LVR and the allowed sale period in writing.
The historical 72% figure alone cannot establish borrowing capacity. A proposed loan must also fit the lender’s accepted security values and repayment assessment. A sale estimate above the mortgage balance doesn’t show how much money remains after selling costs and any other secured payouts.
Peak Debt, End Debt and Repayment Assessment
Peak debt is the debt carried before the sale proceeds reduce it. End debt is the amount remaining after those proceeds are applied. Heritage’s credit decision must specify which balances it tests for repayment capacity and how it treats the overlap.
Fictional Purchase and Sale Worksheet
This fictional transaction shows the funding arithmetic only. The amounts are entered assumptions, not Heritage fees, limits or an approved loan structure.
| Item | Fictional amount | Treatment |
|---|---|---|
| Existing mortgage payout | $300,000 | Include once in total debt |
| New purchase price | $800,000 | Include the whole price before subtracting contributed cash |
| Purchase costs | $40,000 | Assumed duty, legal and other purchase costs |
| Total client cash contribution | $100,000 | Includes any deposit already paid |
| Debt before later charges | $1,040,000 | $300,000 + $800,000 + $40,000 - $100,000 |
| Assumed charges added to debt | $20,000 | Include only if the lender permits capitalisation |
| Debt immediately before sale | $1,060,000 | Assumes no principal repayments or other changes |
| Sale price less selling costs | $700,000 | $720,000 sale price less $20,000 selling costs |
| Remaining debt after sale | $360,000 | $1,060,000 - $700,000 |
The $300,000 existing payout is already in the debt calculation. Subtracting it again from the $700,000 sale proceeds would count the same mortgage twice.
Give Heritage the worksheet and proposed facility splits. Ask its credit assessor to identify the assessed debt, required repayments and treatment of the $20,000 charge allowance. The $360,000 end-debt calculation is not a servicing decision.
Nil end debt means the sale clears all borrowing. Deferred repayments mean payments fall due later, while capitalised interest is added to the balance. Paying interest from cash has a different effect on the client’s reserve.
For a retained Heritage proposal, obtain explicit terms for each of these features. The old matrix’s no-regular-payments description doesn’t establish nil-end-debt eligibility or a current right to defer payments. Use the client’s contract and written credit conditions to set the actual repayment schedule.
Prepare the Evidence and Linked Settlements
Prepare the ordinary borrower evidence alongside documents explaining the purchase and sale. Heritage’s home loan application checklist gives the general starting requirements, with additional information requested for individual files.
For identification, agree the required documents and verification method with the lender. The checklist lists two recent consecutive payslips or three months of statements showing income deposits for employment income. Self-employed applicants need the relevant personal and business tax records, financial statements and notices of assessment.
Collect the living-expense assessment, recent main transaction-account statement and current debt statements. Add the signed purchase contract and evidence of the client’s available contribution. For the sale, prepare the selling-agent appraisal or contract, expected costs and settlement timing.
Have Heritage specify the valuation instructions for both properties, the sale evidence it accepts and any additional income documents. Obtain current payout figures and title details for secured loans. Treat this as a proposed-file checklist until Heritage provides its requirements for the accepted facility.
For an eligible retained file, assign each handoff before the purchase settles:
- Send the scenario to Heritage’s broker team and obtain confirmation of the application route and product. Keep the written response with the file.
- Have the credit assessor set out any conditional decision, outstanding evidence and repayment conditions. Resolve those conditions before treating the funding as ready.
- Have the documentation team confirm that executed documents are accepted. The client’s conveyancer and lender settlement team must agree the funds required for the purchase.
- Before the sale completes, obtain the lender’s payout and security-release instructions. Have the conveyancer confirm the sale proceeds available and their agreed allocation.
- After settlement, reconcile the actual debt reduction. Obtain confirmation that the remaining facility continues on the agreed terms, converts as approved or is fully discharged.
Heritage’s broker contacts separate scenario enquiries from assessment, documentation and settlement support. The Broker Service Line is 1800 627 499. A general scenario response doesn’t confirm that settlement has been booked.
Costs, a Delayed Sale and an Unavailable Product
A fresh Heritage broker application is unavailable, so establish a permitted funding route before calculating its cost. For retained Heritage lending, price the facility from the client’s specific contract and any approved variation.
Heritage’s lending terms and conditions calculate daily interest using the annual percentage rate divided by 365. They generally debit mortgage interest monthly, and unpaid interest added to the balance attracts interest. The contract’s Specific Particulars govern any inconsistent terms.
Separate lender establishment and variation charges from valuation, legal and government costs. Include security releases and existing-loan payout costs where applicable. Ask which charges must be paid from cash and which can be added to approved borrowing.
In the fictional worksheet, a $50,000 reduction in net sale proceeds raises end debt from $360,000 to $410,000. If a longer sale period also adds $10,000 of permitted capitalised charges, the remaining debt becomes $420,000. These are assumed changes, not an interest-rate calculation.
Test both changes against the approved facility limit and repayment conditions. If the sale risks missing the agreed term, contact the credit assessor before the deadline for a written decision on revised arrangements. Don’t assume an extension or extra borrowing follows from having enough equity.
For a new purchase, reassess selling first or negotiating different settlement timing with the client’s conveyancer. If buying first remains necessary, identify another lender that currently accepts the required transaction and broker channel. Recheck its borrower rules, security requirements, maximum debt and sale exit instead of transferring the Heritage worksheet unchanged.
Bulma’s Policy Advisor quotes lender policy wording that you can retain with the file. Its Scenario Planner checks a client’s circumstances across 52+ lenders and shows the conditions and documents for each policy fit. Use that research to prepare the shortlist, then obtain the selected lender’s decision on the actual purchase and sale structure.
