Bank of Melbourne Home Loan Review
Read our Bank of Melbourne Home Loan Review Here:
For home buyers, the Bank of Melbourne offers a basic home loan that lets you borrow up to 80% with a 2.54% p.a. interest rate.
For property investors, the Bank of Melbourne offers an Advantage Package home loan that lets you borrow up to 90% with a 3-year fixed 2.49% p.a. interest rate.
About Bank of Melbourne
Bank of Melbourne was founded in 1989 and re-launched by Westpac in 2011. It is currently owned by Westpac and operated by St. George Bank in Victoria, with branches in Melbourne, Geelong, and regional Victoria.
As a subsidiary of a major bank and funded by retail deposits and wholesale capital markets, Bank of Melbourne offers bank accounts, credit cards, personal loans, and other financial services. It also runs a charitable foundation to give back to its local community.
What You Need to Know About Bank of Melbourne Home Loans
Bank of Melbourne offers all of the same home loans that St. George Bank has.
The basic home loan has no annual fees but comes with a higher rate, so it is more suitable for people who are looking to borrow small.
One level up is the professional package called Advantage Package, which is a good option for those borrowing over $250,000. This loan has an annual fee but offers a lower interest rate plus discounts your offset account, credit card, and other products.
For investors, the Bank of Melbourne offers a line of credit called Portfolio loan – best for those who buy and sell property or shares regularly.
Bank of Melbourne Mortgage Features
- Deposit size: you can borrow up to 95% of the property value
- Benefits: BOM's Advantage Package allows you to combine a mortgage with a transactional bank account and credit card.
- Offset account: BOM's Advantage Package comes with a 100% offset account.
- Great for first home buyers with small deposits
- Guarantor loans available for first home buyers
- Attractive interest rates even if you have a small deposit
- Construction loans
- Works with temporary residents and ex-pats
- Works with mortgage brokers
- SMSF loans
- Wide branch network
- LMI can be expensive for loans worth over 90% of the property value
- Not for people with bad credit
- Not available for residents outside Victoria
- Slow loan processing time during peak months
- Can be quite conservative when it comes to self-employed borrowers
Lenders Mortgage Insurance (LMI) Offer for First Home Buyers
- $1.00 LMI for eligible first home buyers with LVR up to 85%
- Available for eligible home loan applications submitted since July 27, 2020
- The borrower needs to comply with their LMI obligations under the loan agreement
- Available with both the Basic Home Loan and Advantage Package
- Applications must be for a first property purchase
- Loans with an LVR up to 85% at the time of formal approval
- Owner-occupier with principal and interest repayments
- Maximum loan size is $850,000.
- One property to be financed per application
Refinance Cashback Offer Up to $4,000
- $2,000 refinance cashback offer per property only for new refinance applications received from April 1, 2020 to January 31, 2021 and settled by March 31, 2021
- $2,000 extra refinance cashback for a new refinance application submitted from September 18, 2020 to January 31, 2021 and settled by March 31, 2021 with maximum LVR of 80%
- This offer is available for owner-occupiers with principal and interest repayments
- This offer is available for both Basic Home Loan and Advantage Package
- This offer may be withdrawn or varied at any time.
- $250,000 minimum loan per refinanced property
- This offer excludes Portfolio loans and refinances of home loans within the Westpac Group, including St. George Bank, Westpac, Bank of Melbourne, BankSA and RAMS.
- This offer is not available for owner-occupier interest-only loans or residential lending that originated under family or company trusts.
- Cashback rewards will be deposited into your linked Bank of Melbourne transaction account within 60 days of settlement.
To compare Bank of Melbourne home loans with other mortgage products from major banks, lenders, and brokers, click on our comparative tool.
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