After the brand was retired and absorbed into Westpac in 2004, Bank of Melbourne was relaunched in 2011 as a dedicated Victorian bank with its own brand, leadership team and customer-facing operations.
The bank positions itself as a "genuine banking alternative" for Victorians, emphasising local staff, locally based decision-making and strong community partnerships.
Bank of Melbourne offers a range of credit, deposit and payment products, including home loans, personal loans, credit cards, savings accounts, and term deposits.
The bank is also known for its long-running community investment programs.
Bank of Melbourne Home Loans and Interest Rates
See below Bank of Melbourne's home loans for owner-occupiers.
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
What home loans does Bank of Melbourne offer?
Bank of Melbourne provides a broad range of home loan products for owner-occupiers, investors, refinancers and first home buyers. Key loan types include:
Basic Variable Rate Home Loan
A simple variable-rate option with unlimited extra repayments, a redraw facility and no establishment or ongoing fees.
Standard Variable Rate Home Loan with Offset
A feature-rich variable loan with a 100% offset account, allowing borrowers to reduce interest by offsetting funds held in a linked account.
Fixed Rate Home Loan
Allows borrowers to lock in their interest rate for a set period, offering repayment certainty. Extra repayments are capped for the fixed term.
Home Loan Package
Allows borrowers to bundle their home loan with other eligible products (e.g. transaction account, credit card, insurance) to access lower interest rates, no ongoing home-loan fees, discounted insurance premiums, a zero-fee credit card, etc.
What home loan features does Bank of Melbourne offer?
- Redraw facility - Access the extra repayments you've made if you need funds later.
- Offset account - Reduce interest by offsetting money in your linked transaction account against your home loan.
- Split loan option - You can choose to pay part of your mortgage on a fixed rate and the other part on a variable rate.
- Extra repayments - Pay more than the minimum to shorten your loan and reduce total interest.
- Repayment pause - If eligible, you may apply to pause repayments temporarily during hardship or major life events.
Pros and Cons of Bank of Melbourne Home Loans
Pros
- Strong home loan features (offset, split, redraw)
- Competitive package discounts
- Local Victorian brand backed by Westpac stability
- Good digital/app experience
Cons
- Limited branch network across Victoria
- Mixed customer reviews online
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 older
- You are an Australian or New Zealand citizen or permanent resident
- You can demonstrate your ability to service the loan
- You meet Bank of Melbourne's credit assessment criteria
What documents do I need to apply?
Bank of Melbourne generally requires would-be borrowers to present documentation that verifies their identity, income, and financial position.
You may need to provide:
- Government-issued ID
- Proof of income (payslips, tax returns, employment contract)
- Bank statements and savings history
- List of expenses
- List of liabilities (credit card debt, personal loans, HECS, etc.)
You may also be required to provide additional documents depending on the home loan type you're applying for, i.e., evidence of rental income for investment loans or building quotes for construction loans.
Bank of Melbourne Frequently Asked Questions
Pre-approval may take 24–48 hours once you provide full documentation. Unconditional approval usually takes longer (several days to weeks), depending on assessment complexity and property type.
Speak to a Bank of Melbourne lending specialist for more information on your application.
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 the bank’s Identification Verification form or in a branch (where applicable).
Yes. Bank of Melbourne offers a 100% offset account on eligible variable-rate home loans with principal & interest repayments.
Money held in the linked transaction account is offset daily against your loan balance, reducing the interest you pay.
Yes, but how much you can repay depends on your loan type.
Variable-rate home loans – Unlimited extra repayments are allowed, and you can access those funds later using the redraw facility.
Fixed-rate home loans – Extra repayments are capped at $30,000 over the fixed term, subject to product terms. Paying more than the allowed limit may result in break costs.
Advantage Package loans – Extra repayments apply in line with the rules for whichever loan type (fixed or variable) you choose within the package.