Bank of Melbourne home loans review

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on February 01, 2022 Fact Checked
Bank of Melbourne home loans review

Bank of Melbourne is a division of Westpac Banking Corporation, founded as Victoria's local bank in 1989.

It was officially relaunched in 2011 following a $1.4 billion merger with Westpac and now employs more than 1,200 people across the country. 

Bank of Melbourne issues a variety of credit, deposit and payment products, including home loans, credit cards, personal loans, transaction accounts, superannuation and more.

The lender says it has a focus on the progress of Melbourne.

“We support our city’s progress through partnerships with iconic sporting venues like the MCG, and celebrate our food culture with events like Melbourne Food and Wine Festival,” Bank of Melbourne says.

“We’re investing in the arts with Collingwood Yards, where we’re helping create a new cultural destination for the city’s northern fringe.

“We’re also supporting our neighbours who need a helping hand; our Foundation has supported local communities with more than $3 million in grants since 2013.”

What home loans does Bank of Melbourne offer?

Check out some of Bank of Melbourne’s owner occupier home loans in the table below.

Lender

Variable
More details

Basic Home Loan (Principal and Interest) (LVR < 60%) (New Customer)

    Variable
    More details

    Basic Home Loan (Principal and Interest) (LVR 80%-95%) (New Customer)

      Variable
      More details

      Basic Investment Loan (Principal and Interest) (LVR 60%-80%)

        Variable
        More details

        Basic Investment Loan (Principal and Interest) (LVR 80%-95%)

          Fixed
          More details

          Portfolio Loan Fixed 2 Years

            Fixed
            More details

            Advantage Package Portfolio Loan Fixed 3 Years

              Fixed
              More details

              Advantage Package Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR 60%-80%)

                Fixed
                More details

                Advantage Package Portfolio Loan Fixed 1 Year

                  Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.

                  What home loan features does Bank of Melbourne offer?

                  As a Bank of Melbourne home loan customer, you might be eligible for some of the following home loan features:

                  • Redraw facility: Eligible home loans will allow you to withdraw any extra repayments you have contributed on your mortgage.

                  • Offset account: Available to eligible variable rate loan customers with P&I repayments, an offset facility will let you offset your savings against your mortgage, paying less interest. 

                  • Pause repayments: You may apply for a repayment pause in order to reduce or stop your repayments for an approved period. Fees apply.

                  • Guarantors: You may be able to use the equity in your family member's home as security for your own property.

                  • Split loan: You can choose to pay part of your mortgage on a fixed rate and the other part on a variable rate.

                  • Additional repayments: You can make extra repayments to your loan account in order to pay it off faster.  

                  How can Bank of Melbourne save customers money?

                  Bank of Melbourne offers incentives to save money such as a $3,000 cash back offer (expires 28th February 2022).

                  It also offers customers the ability to save with its ‘Package Advantage Loan’, which offers a 1.3% p.a. discount off the standard variable rate for loans above $100,000 when you package a home loan, credit card and transaction account.

                  The package advantage loan also charges no establishment fee on the loan, no monthly account fees, and no annual credit card fee.

                  Am I eligible for a Bank of Melbourne home loan?

                  To apply for a mortgage you generally need to meet the following criteria:

                  • You are 18 years or over

                  • You are an Australian or New Zealand citizen or permanent resident

                  • You are either married or de-facto (to each other) if it's a joint application

                  • You can demonstrate your ability to service the loan

                  How to apply

                  To ensure a smooth application, you'll generally need to have these documents ready for submission:

                  • Savings history, which could be a copy of statements for all your savings accounts

                  • Proof of income (e.g., payslips, employment letter or contract, commission or bonuses) and assets

                  • Anticipated rental income, if you're purchasing a rental property

                  • Estimated expenses and other liabilities (e.g., credit cards, personal loans)

                  • A copy of itemised tender or quote from your builder, if you're building a house

                  • First Home Owner Grant application form, if you're planning to apply for one

                  Bank of Melbourne Frequently asked questions

                  How long does it take for Bank of Melbourne to process my home loan application?

                  Generally, it can take several weeks for your home loan application to be fully processed and approved, as Bank of Melbourne needs to verify your identity, assess your finances and transfer security of the property. 

                  Pre-approval usually takes less time than unconditional approval, and you should receive pre-approval within 24-48 hours once you have submitted all the required documentation, but speak to a Bank of Melbourne lending specialist for more information on your application.

                  How does Bank of Melbourne verify my identity?

                  Bank of Melbourne can verify your identity electronically or over the phone using the personal details you have provided in your application. You can also verify your ID using Bank of Melbourne's Identification Verification form.


                  Image by Denise Jans via Unsplash

                  Disclaimers

                  The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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                  author-avatar
                  Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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