Rates and fees verified as correct at 22 January, 2021. Other information correct at the time of writing. Advertiser disclosure.
Like any fixed rate, you’ll always know where you stand with your monthly budget but with Bank of Melbourne’s fixed home loan if you end up with extra funds you can make fee free extra repayments up to a certain amount each year. There is also a repayment holiday feature which you can use if you need to have a break from the workforce such as maternity leave. The fixed rate loan is available for periods between 1 and 5 years with a choice of principal and interest repayments or interest only repayments. There is a partial interest offset facility where you can rack up serious savings over the term of the loan, but keep in mind these great features aren’t free, you’ll need to pay a monthly service fee.
| Product | Fixed 3 year rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.79% p.a. | 4.90% p.a. | $10.00 monthly | $700 | ||
| 3.74% p.a. | 4.85% p.a. | $10.00 monthly | $700 | ||
| 2.19% p.a. | 4.06% p.a. | $10.00 monthly | $700 | ||
| 2.24% p.a. | 4.11% p.a. | $10.00 monthly | $700 | ||
| 2.14% p.a. | 4.02% p.a. | $10.00 monthly | $700 | ||
| 2.79% p.a. | 4.84% p.a. | $10.00 monthly | $700 | ||
| 2.84% p.a. | 4.89% p.a. | $10.00 monthly | $700 | ||
| 2.74% p.a. | 4.79% p.a. | $10.00 monthly | $700 | ||
| 2.59% p.a. | 4.58% p.a. | $10.00 monthly | $700 | ||
| 2.64% p.a. | 4.63% p.a. | $10.00 monthly | $700 | ||
| 2.54% p.a. | 4.53% p.a. | $10.00 monthly | $700 |
If you’re busy scouring the market for a flexible home loan, Bank of Melbourne has two variable home loans on offer: a no frills, basic variable rate on loans starting from $30,000 and a standard variable rate that is available for loans from as low as $10,000. For first home buyers and those with smaller deposits, Bank of Melbourne’s variable home loans allow you to borrow up to 95% LVR. Both variable loan options from Bank of Melbourne are packed with flexible features that make paying of your loan a breeze including free extra repayments and the ability to set up automatic payments from your nominated Bank of Melbourne bank account - so you never miss a payment! A redraw facility is on hand but you’ll need the bank’s approval to use it, so be sure that you have enough funds to cover your weekly or monthly expenses before making any additional payments.
| Product | Rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.19% p.a. | 3.24% p.a. | $0.00 | $600 | ||
| 2.59% p.a. | 2.64% p.a. | $0.00 | $600 | ||
| 3.14% p.a. | 3.19% p.a. | $0.00 | $600 | ||
| 3.09% p.a. | 3.14% p.a. | $0.00 | $600 | ||
| 2.54% p.a. | 2.56% p.a. | $0.00 | $100 | ||
| 2.59% p.a. | 2.61% p.a. | $0.00 | $100 | ||
| 2.49% p.a. | 2.51% p.a. | $0.00 | $100 | ||
| 5.08% p.a. | 5.25% p.a. | $10.00 monthly | $700 | ||
| 5.03% p.a. | 5.20% p.a. | $10.00 monthly | $700 | ||
| 4.49% p.a. | 4.66% p.a. | $10.00 monthly | $700 | ||
| 4.54% p.a. | 4.71% p.a. | $10.00 monthly | $700 | ||
| 4.44% p.a. | 4.61% p.a. | $10.00 monthly | $700 | ||
| 3.34% p.a. | 3.39% p.a. | $0.00 | $600 | ||
| 3.04% p.a. | 3.09% p.a. | $0.00 | $600 | ||
| 3.19% p.a. | 3.24% p.a. | $0.00 | $600 | ||
| 3.14% p.a. | 3.19% p.a. | $0.00 | $600 | ||
| 2.99% p.a. | 3.01% p.a. | $0.00 | $100 | ||
| 3.04% p.a. | 3.06% p.a. | $0.00 | $100 | ||
| 2.94% p.a. | 2.96% p.a. | $0.00 | $100 | ||
| 5.36% p.a. | 5.53% p.a. | $10.00 monthly | $700 | ||
| 5.31% p.a. | 5.48% p.a. | $10.00 monthly | $700 | ||
| 5.07% p.a. | 5.24% p.a. | $10.00 monthly | $700 | ||
| 5.12% p.a. | 5.29% p.a. | $10.00 monthly | $700 | ||
| 5.02% p.a. | 5.19% p.a. | $10.00 monthly | $700 |
The Advantage package from the Bank of Melbourne is a great choice if you’re looking to borrow between $500,000 and $1,000,000. In return for an annual fee, you’ll receive a discounted interest rate and fees waived on your home loan, credit card and transaction account (i.e. establishment fee, annual card fee, transaction keeping account fee). You can opt for a standard variable, fixed or line of credit home loan and if you have a BT Super for Life account, you’ll receive a $200 cash bonus when your account balance reaches $1,000.
| Product | Fixed 3 year rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.64% p.a. | 4.16% p.a. | $395.00 yearly | $100 | ||
| 3.59% p.a. | 4.11% p.a. | $395.00 yearly | $100 | ||
| 2.04% p.a. | 3.33% p.a. | $395.00 yearly | $100 | ||
| 2.09% p.a. | 3.38% p.a. | $395.00 yearly | $100 | ||
| 1.99% p.a. | 3.28% p.a. | $395.00 yearly | $100 | ||
| 2.64% p.a. | 4.10% p.a. | $395.00 yearly | $100 | ||
| 2.69% p.a. | 4.15% p.a. | $395.00 yearly | $100 | ||
| 2.59% p.a. | 4.05% p.a. | $395.00 yearly | $100 | ||
| 2.44% p.a. | 3.85% p.a. | $395.00 yearly | $100 | ||
| 2.49% p.a. | 3.89% p.a. | $395.00 yearly | $100 | ||
| 2.39% p.a. | 3.80% p.a. | $395.00 yearly | $100 |
For loans between $500,000 and $1,000,000 with added flexibility, take a look at the variable rate Advantage package from the Bank of Melbourne. It’s essentially the same as the fixed rate alternative, but you’ll have unlimited extra repayments and the full use of an offset account, to help you pay off your home loan faster. If you’re an owner-occupier, you may also be eligible to get $2000 cash back if your loan is over $250,000.
| Product | Rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.78% p.a. | 4.19% p.a. | $395.00 yearly | $100 | ||
| 3.73% p.a. | 4.14% p.a. | $395.00 yearly | $100 | ||
| 3.19% p.a. | 3.62% p.a. | $395.00 yearly | $100 | ||
| 3.24% p.a. | 3.67% p.a. | $395.00 yearly | $100 | ||
| 3.14% p.a. | 3.57% p.a. | $395.00 yearly | $100 | ||
| 4.06% p.a. | 4.47% p.a. | $395.00 yearly | $100 | ||
| 4.01% p.a. | 4.42% p.a. | $395.00 yearly | $100 | ||
| 3.77% p.a. | 4.18% p.a. | $395.00 yearly | $100 | ||
| 3.82% p.a. | 4.23% p.a. | $395.00 yearly | $100 | ||
| 3.72% p.a. | 4.13% p.a. | $395.00 yearly | $100 |
Bank of Melbourne’s Portfolio line of credit home loan allows you to borrow up to 90% of your property's value which can be put towards other investments such as shares, property or even a new car. You have the choice to pay either a monthly or annual fee and like other line of credit loans there is no set repayment terms which means you can repay the loan whenever it suits you. You will enjoy 24/7 access to your home loan through mobile and online banking and a linked Visa debit card that you can use to shop wherever Visa is accepted.
| Product | Rate | Comparison Rate | Service fee | Upfront fee |
|---|---|---|---|---|
| 5.98% p.a. | n/a | $200.00 yearly | $800 |
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
‡ Results from this calculation are estimates only as individual lenders apply different formulas. Actual repayments will depend on your individual circumstances and interest rate changes.
No pressure if you’ve been off work for a while, you can reduce or hold your payments when you have fixed or variable loan with Bank of Melbourne (fees apply). Keep in mind this feature is subject to approval.
Bank of Melbourne’s Family Pledge option allows family members to use their own home’s equity to provide security for a portion of your loan amount. Unlike other banks, the guarantee can be limited to a specific amount. This way you may be able to avoid Lender’s Mortgage Insurance which is required of loans with an LVR that exceeds 80%.
You can set up automatic repayments from your nominated Bank of Melbourne bank account and never miss a payment again.
If you want to safeguard yourself against interest rate rises during settlement, Bank of Melbourne’s fixed home loan offers a rate lock feature that allows you to secure their advertised interest rate (up to 3 months). There is a fee for this service.
With Bank of Melbourne’s standard variable rate, you’ll be able to save bundles on interest through an full interest offset facility which offsets the funds in your linked transaction account against the balance of your loan. The fixed rate loan offers a partial interest offset which allows you to access a reduced interest rate.
Mozo users have rated Bank of Melbourne home loans on price, features, convenience, trust and customer service so you can see what real Aussies have to say about their experiences.
174 Reviews
We are changing banks to Bank of Melbourne. Their interest rate is very competitive and our loans officer is so helpful.
Read full reviewWe are changing banks to Bank of Melbourne. Their interest rate is very competitive and our loans officer is so helpful.
We had multiple applications and Bank Of Melbourne came through with the fastest approval and the best rate.
Read full reviewWe had multiple applications and Bank Of Melbourne came through with the fastest approval and the best rate.
Love this bank. I got a mortgage with just one pay slip and at a very competitive rate. So easy to talk to.
Read full reviewLove this bank. I got a mortgage with just one pay slip and at a very competitive rate. So easy to talk to.
Pro: I have no issues with the customer services of this bank. They are responsive, friendly and very helpful. Con: When I tried to get my house evaluated, I was given a price that I thought was undervalued. I went through the process of appealing the price but was responded to in an email that said the price was set. I was not told what the process was for this appeal. I did not think the process was transparent, and hence less trustworthy.
Read full reviewPro: I have no issues with the customer services of this bank. They are responsive, friendly and very helpful. Con: When I tried to get my house evaluated, I was given a price that I thought was undervalued. I went through the process of appealing the price but was responded to in an email that said the price was set. I was not told what the process was for this appeal. I did not think the process was transparent, and hence less trustworthy.
Wont let us get out of a fixed term loan.
Read full reviewWont let us get out of a fixed term loan.
To apply for a Bank of Melbourne home loan, you’ll need the following details and documents:
