Bank of Melbourne Home Loans: The 2026 Review

Bank of Melbourne was established in 1989 following the granting of a banking licence to the RESI Statewide Building Society. It quickly gained traction by listing on the Australian Securities Exchange. In 1997, the bank was acquired by Westpac Banking Corporation, a member of Australia's Big 4 banks. The brand was relaunched in 2011, leveraging the infrastructure of St George Bank, another Westpac subsidiary, to enhance its operations.

Today, Bank of Melbourne operates primarily within Victoria, offering a unique blend of local service backed by the resources of a major financial institution. This strategic positioning allows it to provide personalised services while ensuring the stability and security associated with Westpac. The bank differentiates itself through competitive pricing and a comprehensive range of financial products, appealing to customers who value both local engagement and robust financial backing.

Bank of Melbourne focuses on Victorian customers, providing tailored financial solutions that meet local needs. Its home loan offerings are particularly notable, featuring competitive products like the Advantage Package. This includes benefits such as a $0 lending establishment fee and interest rate discounts. The bank's local presence and customer-centric approach make it a preferred choice for borrowers seeking both personal service and competitive financial products.

• Legal Name: Bank of Melbourne
• ABN: 33007457141
• ACN: 007457141
• Established: 1989
• Headquarters: Melbourne, Victoria
• Type: Public Company
• Ownership: Owned by Big 4

• Website: https://www.bankofmelbourne.com.au
• Phone: 1300 304 660

Bank of Melbourne offers a range of home loan features designed to provide flexibility and value for borrowers, including options for financial flexibility, cost savings, and comprehensive loan management.

• Redraw Facility: For loans fixed from 17 May 2020, borrowers can redraw funds paid during the fixed rate period up to a $30,000 prepayment threshold. This feature offers flexibility by allowing access to extra repayments without additional costs.
• Offset Account: The full interest offset facility helps reduce the interest payable on your home loan, potentially saving you thousands over the loan term. This feature works by offsetting the balance in your linked account against your loan balance.
• Extra Repayments: Unlimited extra repayments enable borrowers to pay off their loan faster without incurring fees. This flexibility can significantly reduce the overall interest paid over the life of the loan.
• Rate Lock: Lock in your fixed rate at the time of application to protect against potential rate increases before settlement. This feature provides certainty and peace of mind, though fees apply.
• Family Pledge: Use the equity in a family member's home to guarantee part of your home loan, increasing borrowing capacity. This feature can assist first-time buyers in entering the property market.
• Advantage Package: Includes a $0 lending establishment fee and $0 loan account fee, with additional benefits like interest rate discounts and credit card perks. This package offers comprehensive financial solutions and cost savings.
• Flexible Repayment Options: Choose from weekly, fortnightly, or monthly repayments to suit your financial situation. This flexibility helps manage cash flow and adapt to changing circumstances.
• Fraud Protection: The product includes features designed to protect against fraudulent activity, providing peace of mind and security for borrowers.
• Guarantor Feature: Subject to terms and conditions, this feature allows a guarantor to support your loan application, potentially increasing borrowing power and reducing the need for a large deposit.
• Combination Loan Feature: Allows borrowers to split their loan into fixed and variable portions, offering the stability of fixed rates with the flexibility of variable rates. This feature caters to diverse financial strategies.

Bank of Melbourne offers a transparent fee structure for its home loan products, with specific fees varying based on the package and loan type. Borrowers can benefit from waived fees under certain conditions, such as the Advantage Package, which includes a $0 lending establishment fee.

• Lending Establishment Fee: $600 - Charged for the establishment of a loan, though waived under the Advantage Package.
• Property Valuer Fee: Variable - Starts from $164, varies based on the location and value of the property.
• Document Processing Fee: $100 - Covers settlement services including document validation and conveyancing.
• Annual Advantage Package Fee: $395 (Annual) - Charged annually for the Advantage Package, which offers interest rate discounts and other benefits.
• Loan Discharge Fee: $350 - Applied per mortgage when a loan is fully paid out.
• Break Cost Fee: Variable - Incurred when a fixed rate loan is repaid early or the fixed rate period is broken.
• Missed Payment Fee: $15 - Charged when an arrears letter is sent for overdue payments.
• Fixed Rate Lock-in Fee: Variable - Allows borrowers to secure a fixed rate, with costs varying by product.
• Loan Account Fee: $0 (Monthly) - Waived under the Advantage Package, otherwise $8 monthly for other products.

Bank of Melbourne offers home loans to individuals, trusts, companies, and partnerships, focusing on Australian and New Zealand citizens or permanent residents. With competitive features like the Advantage Package, the bank provides accessible options for a variety of borrowers.

• Applicants must be at least 18 years old.
• Must be an Australian or New Zealand citizen or permanent resident.
• Available to individuals, trusts (individual and company trustees), companies, and partnerships.
• Applicants should demonstrate the ability to repay the loan through stable income and employment.
• A satisfactory credit history is required for approval.
• Available to both new and existing home loan customers.
• Applicable for owner-occupiers buying a new home or vacant land to build a home.

• Loan to Value Ratio (LVR) up to 95% may be available with Lenders Mortgage Insurance (LMI).
• The Family Pledge option allows the use of family equity to support loan applications, potentially reducing deposit requirements.
• A $30,000 prepayment threshold applies to fixed loans without incurring break costs.