Bank of Melbourne

Bank of Melbourne Home Loans

Key Benefits

+ Well priced home loans, particularly for customers working with mortgage brokers.
+ Staged loans specifically designed for people building or renovating.
+ Many loans allow for family members to act as guarantors which may remove the LMI requirement.


x LMI can be expensive if you’re borrowing over 90% of the property value.
x If you live outside of Victoria, you’ll be referred to St George Bank.
Slow loan processing times when busy.

Part of the Westpac family, Bank of Melbourne was launched in 2011, effectively rebranding the St. George’s banks across Melbourne.

Bank of Melbourne exclusively services customers in Victoria. However, being part of Australia’s largest regional banking network alongside St.George and BankSA, customers can access their accounts from any interstate branch or ATM.

Priding themselves on their localised knowledge, Bank of Melbourne provides a premium, personalised service to local people, communities, and the state. Their diverse team speaks a variety of languages and follow a mandate to respect every customers heritage and unique ways of working.

Bank of Melbourne Home Loan Products

Standard Variable Rate Home Loan

This loan offers lower interest rates for LVR+ above 60% up to 80%, and available to approved borrowers up to 95% LVR. Additional features include the ability to make unlimited additional repayments with no break costs for early repayment, the ability to pause or reduce payments a redraw facility, and the option to split your loan with partial fixed interest and variable interest rates. The optional full interest offset facility is designed to help borrowers save on interest (fees apply.)

Fixed Rate Home Loan

Lock in a fixed rate for 1 to 5 years, with the added option of paying interest in advance on investment loans for a discounted fixed interest rate. This loan is eligible for the Advantage Package which can attract discounts on interest rates and fees. The interest rate can be re-fixed at the end of the initial term, or it can be reverted automatically to the standard variable interest rate.

Basic Home Loan

A home loan for those who don’t want to pay for features they won’t use, this option features a lower variable interest rate, and allows for extra repayments at no extra cost. Additional features include a redraw facility and the ability to pause or reduce repayments.

Portfolio Loan

An ongoing line of credit that provides access funds to make investments, this loan offers a flexible line of credit, where you could borrow up to 90% of the value of your secured property. It also features a fixed rate interest term, the ability to package with your credit card and transaction account to attract interest rate discounts and the choice of fortnightly or weekly repayments. Borrowers can set up to ten sub-accounts to keep investments separate and help manage tax and finances.

Building Loan

Designed for new builds, this loan has features designed specifically to fund the building of a new home. Funds are advanced progressively, as the builder completes pre-agreed construction stages, to potentially save on interest during the build. Bank of Melbourne can also assist with the scheduling of progress payments and expenses so they are made to the builder after each stage.

Relocation Loan

Relocations loans allow you to live in your existing home while a new home is being built. This loan offers a range of interest offset facilities, which can save on interest by offsetting the funds in linked transaction account against the balance of the loan. This loan can also be used in conjunction with the Advantage Package, which offers eligible borrowers discounted interest rates and fees.

Advantage Package

Save when you package a home loan, credit card and transaction account with discounts on interest rates for eligible loans. This package also provides no home loan establishment fees, no monthly home loan administration fee and no annual credit card fee.

About Bank of Melbourne Refinancing

You will be required to provide:

  • Proof of income. This may include payslips, contracts from current employers, tax returns if you are self-employed, records of any savings history, proof of rental income or tenancy and a statement detailing current Government entitlements or , maintenance payments.
  • Financial commitments. This may include details of loans and cards with other financial institutions, outstanding student debts, rental agreements, tax debts, and living expenses.
  • Borrowing purpose. If, for example, you are refinancing to renovate your home, provide paperwork outlining quotes from licenced builders. These should be dated within 14 days and remain firm for 60 days.

After completing your application (online or at a branch) including necessary documentation, a Bank of Melbourne Home Loan expert will contact you to verify your information, discuss your loan needs and progress your application. Following this, the bank will confirm your borrowing capacity and issue a conditional approval including any conditions (such as the receipt of a satisfactory property valuation or some details being confirmed).

After these details are finalised, the bank can formally approve your loan, and issue you with a Loan Offer and your Mortgage documents. They will then liaise with you and your legal representative to make sure all conditions of the loan approval are satisfied.

Bank of Melbourne Home Loan Products Comparison


Refinancing FAQs

What does refinancing a home loan mean?

Refinancing is when you take out a new mortgage in order to pay off an existing loan. This often occurs due to a change in financial situation, or because you want to secure a better deal on your mortgage. This can be facilitated with the same lender, or involve switching to a new mortgage provider.

What is the benefit of refinancing a home loan?

There is a range of benefits to refinancing your home loan. It can allow you to take advantage of a better home loan deal, unlock equity in your home, reduce the fees you pay, simplify your repayments (especially if you’re consolidating multiple debts) and even shorten the term of your mortgage therefore reducing your interest payments.

How soon can you refinance after refinancing?

How long you need to wait before refinancing depends on your mortgage provider. Some allow you to do so immediately after closing, while others have a waiting period of six months or longer. It’s best to check with your lender to determine their specific requirements.

What fees are involved in refinancing a mortgage?

Some common costs of refinancing include application fees, valuation fees, registration fees and discharge of mortgage fees.

What is the process of refinancing a home?

The first place to start with refinancing is to assess your current financial situation to ensure it’s the right choice for you. Then, you generally start by contacting your existing lender to see whether they can improve your current home loan deal. If they are unable to provide an alternative, you would then work with a broker to compare other home loans on the market. If you find a better option, you would apply for your new mortgage and exit your old one.

What is the risk of refinancing?

There are a few risks involved in refinancing your home. One of these is that if you apply for a fixed rate loan, sometimes this rate can actually fluctuate in the period between approval and settlement. This would mean you may not have actually locked in a better rate which is why it’s important to check you’re getting a home loan with a rate lock feature. Other risks involve getting locked into a longer mortgage term (therefore increasing your interest repayments) and being tricked by tempting introductory variable or honeymoon’ rates.

How much could refinancing save you?

There’s no hard and fast rule as to how much refinancing can save you: this depends on your unique financial situation, as well as the difference between your old and new interest rate. However, data shows that when your interest rate drops by 2% or more, this could save you up to $20,000 over the course of your mortgage.