Bank of Melbourne Home Loans: The 2026 Review

Bank of Melbourne was relaunched in 2011, evolving from St George Bank's Victorian operations. This strategic move aimed to provide more localised banking services while leveraging the extensive resources of Westpac Banking Corporation. The rebranding marked a significant milestone, positioning the bank to better serve the Victorian market with tailored financial solutions.

Today, Bank of Melbourne operates as a division of Westpac, focusing on delivering personalised service with the backing of a major financial institution. Despite a reduced branch network of nine locations, it offers competitive home loan products, including fixed and variable rate options. The bank differentiates itself by providing localised service combined with the security and resources of Westpac.

Bank of Melbourne primarily targets Victorian residents, especially first-home buyers and investors. Its unique selling proposition includes competitive interest rates and discounts on packaged loans, although these come with a $395 annual package fee and a minimum loan amount of $150,000. The Family Pledge program further enhances its offerings, allowing borrowers to use a family member's home equity, appealing to those seeking flexible home loan solutions.

• Legal Name: Bank of Melbourne
• ABN: 33007457141
• ACN: 007457141
• Established: 2011
• Headquarters: Melbourne, Victoria
• Type: Division
• Ownership: Owned by Big 4

• Website: https://www.bankofmelbourne.com.au
• Phone: 03 8536 7890

Bank of Melbourne offers a comprehensive range of home loan features designed to provide flexibility and cost savings for borrowers. With options like redraw facilities, family equity support, and package loans, customers can tailor their home loan experience to suit their needs.

• Redraw Facility: For loans fixed from 17 May 2020, customers can redraw funds up to a $30,000 prepayment threshold during the fixed rate period. This feature allows borrowers to access extra repayments when needed, providing financial flexibility.
• Family Pledge: This feature allows borrowers to use the equity in a family member's home to assist in borrowing. It helps maximise borrowing capacity and can be particularly beneficial for first-home buyers.
• Combination Loan: Borrowers can split their loan into fixed and variable components, providing a balance between stability and flexibility. This feature helps manage interest rate risks and tailor repayments to personal preferences.
• Package Loan with Cancellation Option: Customers can bundle services for a $395 annual fee, gaining access to rate discounts and additional features. The package can be cancelled with 14 days' notice, offering flexibility if circumstances change.
• Offset Account: A full interest offset facility is available, allowing borrowers to reduce the interest payable on their home loan. This feature can significantly decrease the overall interest cost, enhancing long-term savings.
• Flexible Repayments: Borrowers can choose to make repayments weekly, fortnightly, or monthly. This flexibility allows for better cash flow management and can be tailored to align with income cycles.
• Online Banking Features: Access to online banking and mobile app features provides convenience and control over loan management. Borrowers can easily track their loan progress and make payments from anywhere.
• Extra Repayments: Subject to terms and conditions, borrowers can make unlimited extra repayments without penalty. This feature enables faster loan repayment and reduces the total interest paid over the loan term.
• Interest Rate Discounts: Packaged loans offer interest rate discounts, providing cost savings over the loan term. This benefit is particularly attractive for those borrowing above the $150,000 minimum requirement.

Bank of Melbourne provides a transparent fee structure with a mix of upfront, ongoing, and other fees, ensuring borrowers understand the total cost of borrowing.

• Lending Establishment Fee: $600 - Charged for the initial setup of the loan, but waived for fixed rate loans.
• Property Valuer Fee: Variable - Starts from $164; varies based on the location and value of the security property.
• Document Processing Fee: $100 - Covers settlement processing services including document validation and transaction processing.
• Annual Advantage Package Fee: $395 (Annual) - Applies to bundled services, offering interest rate discounts and additional features.
• Loan Discharge Fee: $350 - Charged per mortgage when the loan is fully repaid or transferred to another lender.
• Fixed Rate Lock-in Fee: $500 - Allows borrowers to secure their interest rate before settlement.
• Missed Payment Fee: $15 - Applied when an arrears letter is sent for an overdue payment.
• Loan Account Fee: $0-$8 (Monthly) - Varies by product; some loans have no account fee, while others charge $8 monthly.

Bank of Melbourne provides home loans primarily to Australian and New Zealand citizens or permanent residents, offering flexible options for both new and existing customers.

• Applicants must be at least 18 years old.
• Must be an Australian or New Zealand citizen, or a permanent resident.
• Available to individuals, trusts (individual and company trustees), companies, and partnerships.
• Minimum loan amount of $150,000 for packaged loans.
• Owner occupiers purchasing a new home or vacant land with a building contract are eligible.
• Income and employment status must demonstrate the ability to repay the loan.
• Credit history will be assessed for loan approval.

• Loan-to-Value Ratio (LVR) above 80% may require Lenders Mortgage Insurance (LMI).
• The Family Pledge program allows using a family member's home equity as security.
• A $395 annual package fee applies for bundled services.