Compare Bank of Melbourne Home Loans & Interest Rates
Dominic Beattie
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- Bank of Melbourne was established in 1989, acquired by the Westpac Group in 1997 and retired in 2004.
- Bank of Melbourne was relaunched in 2011 as a dedicated bank in Victoria.
- Its home loan range consists of a basic variable, a variable rate mortgage with offset, a fixed rate option and a package home loan.
- The Advantage Package offers interest rate discounts and fee waivers.
Bank of Melbourne is a Victorian banking brand owned by the Westpac Group.
Originally established in 1989, it was acquired by the major bank in 1997, phased out in 2004 and relaunched in 2011 as a dedicated bank for Victoria with its own brand indentity, leadership team and customer-facing operations.
Bank of Melbourne sits alongside BankSA and St.George within the Westpac stable, offering a full suite of banking products including home loans, personal loans, credit cards, savings accounts and term deposits.
Bank of Melbourne's main point of difference is its Victorian focus, positioning itself as part of Australia's regional banking network while benefiting from Westpac Group's ownership.
As part of the group, Bank of Melbourne's home loan products notably share similar structures, eligibility criteria and features with those offered by Westpac, BankSA and St.George.
What home loans does Bank of Melbourne offer
Bank of Melbourne's home loan range centres on variable and fixed rate products, with borrowers also able to access a packaged home loan for additional features and rate discounts. The home loans are available for both owner occupied and investment residential properties.
Basic Variable Home Loan
As the name suggests, the Basic Variable Home Loan is Bank of Melbourne's no-frills variable rate loan designed for borrowers seeking a simple and low-fee mortgage. Key features include:
- $0 application fee
- $0 monthly ongoing fee
- Fee free redraw facility
- Unlimited extra repayments
- Flexible repayment frequency
Variable Home Loan with Offset
This product caters to Bank of Melbourne borrowers looking for a variable rate home loan that can be linked to an offset account (up to 10 accounts) to help reduce interest costs. Key features include:
- 100% offset account
- Fee free redraw facility
- Unlimited extra repayments
- Flexible repayment frequency
- Split loan option
- Guarantor support
- Repayment holiday
Fixed Rate Home Loan
Bank of Melbourne's fixed rate home loans are available in terms starting at one year to five years, during which time borrowers can lock in their interest rate for greater repayment certainty. Key features include:
- Rate lock option
- Fee free redraw facility
- Up to $30,000 in extra repayments
- Flexible repayment frequency
- Interest in advance feature
- Guarantor support
Advantage Package
Advantage Package is Bank of Melbourne's premium home loan bundle. For an annual package fee, borrowers can bundle their variable offset or fixed rate home loan with selected banking products to access interest rate discounts and fee savings.
Key features include:
- Discounted variable and fixed home loan rates
- Waived loan establishment fee
- Waived monthly account fee
- Access to cardholder rewards and cashback offers
Compare Bank of Melbourne home loan interest rates
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.54% p.a. | 6.55% p.a. | $3,174 | Principal & Interest | Variable | $0 | $100 | 70% | |||||||||||||
6.64% p.a. | 6.65% p.a. | $3,207 | Principal & Interest | Variable | $0 | $100 | 80% | |||||||||||||
6.64% p.a. | 7.01% p.a. | $3,207 | Principal & Interest | Variable | $395 | $100 | 70% | |||||||||||||
6.74% p.a. | 7.02% p.a. | $3,240 | Principal & Interest | Fixed | $395 | $100 | 70% | |||||||||||||
6.74% p.a. | 7.03% p.a. | $3,240 | Principal & Interest | Fixed | $395 | $100 | 70% | |||||||||||||
6.74% p.a. | 7.11% p.a. | $3,240 | Principal & Interest | Variable | $395 | $100 | 80% | |||||||||||||
6.79% p.a. | 6.80% p.a. | $3,256 | Principal & Interest | Variable | $0 | $100 | 70% | |||||||||||||
6.84% p.a. | 7.12% p.a. | $3,273 | Principal & Interest | Fixed | $395 | $100 | 80% | |||||||||||||
6.84% p.a. | 7.13% p.a. | $3,273 | Principal & Interest | Fixed | $395 | $100 | 80% | |||||||||||||
6.84% p.a. | 7.21% p.a. | $3,273 | Principal & Interest | Fixed | $395 | $100 | 70% |
Bank of Melbourne home loan features
Additional repayments
Bank of Melbourne offers the ability to make unlimited extra repayments across variable rate home loan options, helping borrowers reduce their principal faster and potentially save interest over the life of the loan.
Additional repayments for fixed rate borrowers are capped at $30,000 during their fixed rate period.
Redraw facility and offset account
Borrowers ahead on their minimum repayments may be able to access those funds fee-free via Bank of Melbourne's redraw facility.
Meanwhile, home loan customers with a 100% offset account can link up to 10 accounts.
Flexible repayment frequency
Bank of Melbourne customers have the option to choose their home loan repayment frequency from either weekly, fortnightly or monthly.
Repayment pause
Eligible borrowers who need to reduce or pause their regular repayments can apply for Bank of Melbourne's Reduced Repayments or Repayment Holiday for an approved period of time at the bank's discretion.
Interest in advance
Eligible investment borrowers with a fixed rate home loan may receive a 0.20% p.a. discount when paying interest in advance. The fixed interest rate discount applies for the interest in advance period. This may appeal to investment borrowers seeking to manage cash flow and interest costs.
Borrower support (Family Pledge and Home Guarantee Scheme)
Eligible borrowers may be able to use a family member as a guarantor to maximise the amount they can borrow and avoid lenders mortgage insurance (LMI) through Bank of Melbourne's Family Pledge.
Bank of Melbourne also participates in the Australian Government's 5% Deposit Scheme, which helps eligible first home buyers and single parents buy property even with just a 2% or 5% deposit without paying LMI.
Split loan option
In addition to variable and fixed rate options, customers may split their home loan between fixed and variable interest rate portions, combining flexibility and certainty.
Rate lock
Borrowers taking out a fixed rate home loan can lock in their approved rate before settlement for a fee. Bank of Melbourne's rate lock fee is generally 0.15% of the loan amount, with a minimum fee of $500 and a maximum of $1,000 for loans up to $2 million. The rate can typically be locked for up to 90 days.
Bank of Melbourne home loan fees
Below is a range of fees that may be charged when applying for, settling, or maintaining a Bank of Melbourne home loan. Payable fees vary depending on the home loan product:
- Establishment fee – $600*
- Document processing fee – $100
- Monthly account fee – $8*
- Advantage Package fee – $395 per year
- Rate lock fee – 0.15% of the loan amount or $500, whichever is greater (capped at $1,000)
- Discharge fee – $350
*Waived under Advantage Package
Other fees, including valuation fees, break costs and missed payment fees may apply.
Pros of Bank of Melbourne home loans
- Big bank backing
- Local Victorian presence
- Extra repayments
- Free redraw
- 100% offset account
- Guarantor support
- Competitive package discounts
Cons of Bank of Melbourne home loans
- Dedicated branch network limited to Victoria
- Package fee may not suit smaller loans
- No standout niche offering
How to apply for a Bank of Melbourne home loan
Eligibility requirements
To apply for a home loan with Bank of Melbourne, would-be borrowers generally need to meet the following eligibility criteria:
- Be 18 years old or over
- Be employed or earning a regular income
- Have an acceptable credit history
- Loans must be secured by an Australian residential property
Documents needed
- Valid ID (e.g. driver's licence, passport, Medicare card)
- Income details (e.g. two most recent payslips for employed, business and tax returns for self-employed)
- Details of savings and assets (e.g. bank statements)
- Details of other loans and liabilities
- List of regular expenses
Additional documentation relating to the property, deposit or government incentives you may be eligible for could also be required. Required documents may vary depending on the home loan you're applying for.
Savings.com.au's two cents
Bank of Melbourne may appeal most to borrowers in Victoria who want the backing of a major banking group while benefitting from a strong regional presence.
The bank positions itself as a "genuine banking alternative" for Victorians, emphasising local staff, local decision-making and strong community partnerships. So while its home loan products share similarities with those offered by its sister brands, Bank of Melbourne stands out through its Victorian focus.
As always, compare your options carefully and weigh up whether the features justify the costs. For example, the Advantage Package may be more suitable for borrowers with larger loan balances, where interest discounts and fee waivers may outweigh the annual package fee.
Frequently Asked Questions
Processing times vary depending on the complexity of your application and whether all required documentation has been provided.
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.
Yes. Bank of Melbourne offers a 100% offset account through its Variable Rate with Offset Home Loan product.
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 via 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 penalties.
- Advantage Package loans – Extra repayments apply in line with the rules for whichever loan type (fixed or variable) you choose within the package.