Why am I seeing unexpected monthly deductions labeled as debit interest?

These deductions are often related to interest charges on your loan. If they seem incorrect, contact customer service for clarification, although response times may be slow.

What are the break costs for a fixed rate loan with Bank of Melbourne?

Break costs apply if you exit a fixed rate loan early. These can be significant, so it's important to understand the terms before committing to a fixed rate.

Why did I receive a foreign tax form from Bank of Melbourne?

These forms are sometimes sent in error. If you're not involved in foreign investments, contact customer service to resolve any confusion.

What fees should I expect with the Annual Advantage Package?

The Annual Advantage Package has a high annual fee of $395. Make sure the benefits outweigh the costs for your situation.

How much will I pay monthly on a $500,000 loan at 6.29%?

Your monthly repayment would be $3,092, with a total interest of $612,978 over 30 years. This loan offers a monthly saving of $69 compared to the market.

What is the discharge process like with Bank of Melbourne?

Discharging a mortgage involves a $350 fee and can take several weeks. You'll need to submit a discharge authority form to start the process.

How much could I save by refinancing to Bank of Melbourne?

For a $1,000,000 loan, you could save $137 monthly, totaling $49,489 over 30 years, even with the bank's higher initial rates.

What should I do if I experience service outages with Bank of Melbourne?

Service outages have been reported, but they're not currently affecting users. If you experience issues, check their website for updates or contact support.

What are the benefits of the Complete Freedom account?

New account holders can receive a $50 cashback, and there's no annual credit card fee with the package, offering added value.

UPDATED JUL 15, 2026

Bank of Melbourne Home Loans: The 2026 Review

Enjoy $50 cashback with the Complete Freedom account and no lending establishment fee. Watch out for the $395 annual fee. Ready to explore your options?

Bheja Verdict

Very Good

4.0/5

✓

Competitive interest rates

✓

Great features: offset account, redraw facility

Check Eligibility

Bank of Melbourne Home Loans At a Glance

🏷️Best Rate Available

6.29%

Variable • Owner Occupied

💳Application Fee

Fee-free options available

📅Monthly Fee

Fee-free options available

Loan Range:$10K - $100.0M

LVR:Up to 95%

Products:147 variations

Offset Account:Available

Current Bank of Melbourne Home Loan Rates

Last updated: July 2026

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Average Rate: 7.37%
Best Rate: 6.39%
Monthly Payment: $3,124

Advanced

Sort By

Basic Variable Home Loan
Bank of Melbourne
20%-30% DepositRedraw
6.39%
Interest Rate
Variable
6.40%
Comparison Rate*
$3,124
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Variable Home Loan with Offset
Bank of Melbourne
20%-30% DepositOffsetRedraw
6.49%
Interest Rate
Variable
6.86%
Comparison Rate*
$3,157
per month
Principal And Interest
Check Eligibility
Fees:
Application $600Ongoing/year $395
Discharge
$350+ other fees may apply
Basic Variable Home Loan
Bank of Melbourne
5%-20% DepositRedraw
6.69%
Interest Rate
Variable
6.70%
Comparison Rate*
$3,223
per month
Principal And Interest
Check Eligibility
Fees:
Discharge
$350+ other fees may apply
Variable Home Loan with Offset
Bank of Melbourne
5%-20% DepositOffsetRedraw
6.79%
Interest Rate
Variable
7.16%
Comparison Rate*
$3,256
per month
Principal And Interest
Check Eligibility
Fees:
Application $600Ongoing/year $395
Discharge
$350+ other fees may apply
Variable Home Loan with Offset
Bank of Melbourne
20%-30% DepositOffsetRedraw
8.79%
Interest Rate
Variable
8.93%
Comparison Rate*
$3,948
per month
Principal And Interest
Check Eligibility
Fees:
Application $600Ongoing/year $395
Discharge
$350+ other fees may apply
Variable Home Loan with Offset
Bank of Melbourne
5%-20% DepositOffsetRedraw
9.09%
Interest Rate
Variable
9.23%
Comparison Rate*
$4,056
per month
Principal And Interest
Check Eligibility
Fees:
Application $600Ongoing/year $395
Discharge
$350+ other fees may apply

Bank of Melbourne Product Statistics

Real-time insights and market analysis

Bank of Melbourne offers 5 home loan products across 147 variations, the average variable rate is 7.85% p.a., the best available rate is 6.29% p.a..

Average Variable Rate

7.85%

37 products

Average Fixed Rate

6.95%

110 products

Best Available Rate

6.29%

Variable • Owner Occupied • P&I

Total Products

147 variations

Fee Summary

Application Fee

7% fee-free

$0 - $600

Monthly Fee

7% fee-free

$0 - $8

Discharge Fee

$350

Late Payment Fee

$15

Key Features

Across Bank of Melbourne's range: 22 include an offset account, 143 offer redraw, 147 allow extra repayments, 147 support split loans.

Offset Account

15%

Redraw Facility

97%

Extra Repayments

100%

Split Loan

100%

Product Ranges

Bank of Melbourne's interest rates range from 6.29% to 9.96% p.a., maximum LVR from 70% to 95%, loan amounts span $10,000 to $100,000,000.

Interest Rates6.29% — 9.96%

Max LVR70% — 95%

Loan Amount$10K — $100.0M

Disclaimer: The key features displayed highlight what's available across the lender's home loan range. Individual products and variations may differ. Use the product table to search for a loan with the specific features you're looking for.

How Bank of Melbourne Compares

FEATURE	Bank of Melbourne	Westpac	MyCard	Bankwest	St.George Bank
Best Variable Rate	6.29%	5.99%	—	6.19%	6.29%
Best Fixed Rate (3yr)	6.54%BEST	6.54%	—	6.69%	6.54%
Application Fee	$0BEST	$0	$0	$0	$0
Monthly Admin Fee	$0BEST	$0	$0	$12	$0
Offset Account			—
Redraw Facility			—
Product Variations	147	173	0	105	147

💡

Bheja Insight: Bank of Melbourne offers offset accounts like most mid-tier banks, helping reduce interest while keeping funds accessible.

About Bank of Melbourne

Company overview and contact information

Bank of Melbourne, a major bank owned by Westpac Banking Corporation, operates with a strong presence in Victoria, Australia. As part of the Big 4 banks, it combines the reliability of a large financial institution with a focus on local customer service. With its headquarters in Melbourne, the bank offers both branch and online services, ensuring accessibility and convenience for its clients.

The bank provides a diverse range of home loan products, featuring 147 variations with interest rates ranging from 6.29% to 9.96%. These products cater to a wide array of customers, from first-time homebuyers to seasoned investors. Notable features include no lending establishment fees, a Rate Lock option, and flexible repayment plans, making their offerings both competitive and customer-friendly.

What sets Bank of Melbourne apart is its commitment to providing value through special programs, such as no annual credit card fees with certain packages. As an APRA-regulated Authorized Deposit-taking Institution (ADI), it maintains a strong reputation for security and trustworthiness. This combination of local expertise and comprehensive financial solutions makes it a preferred choice for homebuyers in Victoria.

Company Details

Legal Name: Bank of Melbourne

ABN: 33007457141

ACN: 007457141

Headquarters: Melbourne, Australia

Ownership: Big 4 Owned

Parent Company: Westpac Banking Corporation

Key Features

Bank of Melbourne offers flexible home loan solutions with features like offset accounts, redraw facilities, and fixed rate options, designed to provide financial flexibility and cost savings for borrowers. With benefits such as no ongoing fees and the ability to manage loans digitally, customers can tailor their home loan experience to suit their needs.

Offset Account

Bank of Melbourne provides up to 10 offset accounts linked to your home loan, allowing you to reduce interest on your mortgage. For example, a $50,000 offset can save $262 per month, translating to significant annual savings.

Extra Repayments

Customers can make unlimited extra repayments on their home loans without incurring fees, enabling them to pay off their loans faster and reduce overall interest costs. This feature is available on select products.

Redraw Facility

For loans fixed from 17 May 2020, customers can redraw up to $30,000 of additional payments made during the fixed rate period. This provides flexibility to access funds if needed, subject to conditions.

No Ongoing Fees

Bank of Melbourne home loans come with $0 monthly account-keeping fees, helping borrowers save on regular costs. However, other fees may apply, such as a $395 annual package fee for the Advantage Package.

Rate Lock Feature

The Rate Lock feature allows borrowers to secure a fixed interest rate for up to 90 days, protecting against potential rate increases before settlement. This feature incurs a fee but offers peace of mind.

Repayment Flexibility

Borrowers can choose between weekly, fortnightly, or monthly repayment schedules, and apply for interest-only periods, providing flexibility to manage cash flow effectively.

Online Banking

Bank of Melbourne offers comprehensive online banking services, allowing customers to manage their home loans conveniently through a secure platform, including making payments and accessing statements.

Guarantor Features

Subject to terms and conditions, Bank of Melbourne home loans can include guarantor options, enabling borrowers to use a family member's equity to secure their loan and potentially increase borrowing capacity.

Combination Loan Feature

This feature allows borrowers to split their loan into fixed and variable portions, offering a balance of stability and flexibility in managing interest rates and repayments.

Fraud Protection

Bank of Melbourne includes fraud protection features in its home loan products, safeguarding borrowers against unauthorised transactions and providing peace of mind.

Fees & Charges

Bank of Melbourne offers a variety of home loan products with a range of fees, some of which can be waived under specific packages like the Advantage Package. Their fee structure includes both upfront and ongoing fees, with variations depending on the loan type and product selected.

Fee Type

Amount

Description

Lending Establishment Fee

$0-$600

$600 for Standard Variable, Fixed Rate, and Relocation Loan; $0 for Basic Home Loan or when waived under Advantage Package.

Property Valuer Fee

Variable

Dependent on property location and value, starting from $164.

Document Processing Fee

$100

Charged for processing settlement services, applicable to all loan types.

Annual Advantage Package Fee

$395/year

Charged for Standard Variable and Fixed Rate Home Loan, waives certain other fees.

Loan Discharge Fee

$350

Applicable per mortgage for all loan types.

Break Cost Fee

Variable

Calculated individually for Fixed Rate Home Loans when breaking the fixed rate period or early repayment.

Missed Payment Fee

$15

Charged when an arrears letter is sent for an overdue amount.

Fixed Rate Lock-In Fee

0.15% of loan amount

Minimum $500, maximum $1,000 for loans up to $2M, applicable to Fixed Rate Home Loans.

Loan Account Fee

$0-$8/month

$0 for Basic Home Loan; $8 for others, waived under Advantage Package.

Fees subject to change. Refer to lender documentation for current rates.

Eligibility Criteria

Bank of Melbourne offers home loans to a diverse range of customers, including individuals and businesses, with a focus on Australian and New Zealand citizens or permanent residents. Their loans are accessible to both new and existing customers, with flexible options for owner-occupiers and investors.

Must be at least 18 years old.

Must be an Australian or New Zealand citizen or permanent resident.

Available to individuals, trusts, companies, and partnerships.

Must be a new or existing home loan customer.

Loan-to-Value Ratio (LVR) must be between 70% and 95%.

Loan amounts range from $10,000 to $100,000,000.

Must provide recent payslips and bank statements for income verification.

Owner-occupiers must be buying a new home or vacant land to build a new home.

Important Notes

LMI may be required for loans with an LVR above 80%.
Advantage Package offers fee waivers and rate discounts, subject to a $395 annual fee.
Special promotional rates available for applications from 24/11/2023.
Check the details of a particular offer before making an application.

Bank of Melbourne Home Loan Pros & Cons

Our expert take on whether Bank of Melbourne is right for you

Pros

+Significant savings on larger loans
+Flexible repayment options
+No lending establishment fee
+Rate Lock feature available
+Package includes credit card fee waivers

Cons

–Above market average interest rates
–High annual and discharge fees
–Customer service complaints
–Break costs for fixed rate loans

Best For

Borrowers seeking significant savings on large loans
Customers valuing flexible repayment options
Individuals interested in package deals with credit card benefits

Not Ideal For

Borrowers prioritizing low interest rates
Customers requiring responsive customer service

💡

Bheja Verdict: Bank of Melbourne offers competitive savings on larger loans but has higher-than-average rates and some customer service issues.

Expert Secrets (Why Use Us?)

Insider knowledge about Bank of Melbourne that most borrowers don't know

LMI Cost Examples

1For a $500,000 loan at 85% LVR, LMI costs $6,000.

2At 90% LVR, the LMI increases to $12,500, and at 95% LVR, it reaches $21,000.

3For a $750,000 loan, LMI costs are $9,000 at 85% LVR, $18,750 at 90% LVR, and $31,500 at 95% LVR.

4A $1,000,000 loan incurs LMI costs of $12,000 at 85% LVR, $25,000 at 90% LVR, and $42,000 at 95% LVR.

Fee Waivers

Advantage Package waives certain fees and offers a 0.20% p.a. fixed rate discount.

No annual credit card fee with the Advantage Package.

Basic Home Loan Promotional Principal and Interest Rate offers fee savings for new applications from 24/11/2023.

Offset Benefits

A $10,000 offset saves $52/month ($624/year).

A $25,000 offset saves $131/month ($1,572/year).

A $50,000 offset saves $262/month ($3,144/year).

A $100,000 offset saves $524/month ($6,288/year).

Admin & Logistics (The Help Desk)

Everything you need to manage your loan

Application Process

5 Steps

Prepare for Discharge: Ensure all loan payments are up to date. Gather necessary documents such as your loan account details and identification. (Tip: Check your loan balance and confirm there are no outstanding fees.)

Submit Discharge Authority Form: Complete the Discharge Authority Form available on the Bank of Melbourne website or by contacting customer service. Submit the form to initiate the discharge process. (Tip: Keep a copy of the submitted form for your records.)

Pay Discharge Fee: Pay the $350 discharge fee as required. This fee is per mortgage and covers the processing of your discharge request. (Tip: Ensure payment is made promptly to avoid delays.)

Wait for Processing: The bank will process your discharge request, which may take several weeks. They will coordinate with any new lender if refinancing. (Tip: Contact customer service if you have not received an update within the expected timeframe.)

Settlement Booking: Coordinate with your conveyancer or solicitor to book a settlement date. The bank will finalize the discharge on this date. (Tip: Ensure all parties are informed of the settlement date to avoid last-minute issues.)

Processing Times

Discharge ProcessSeveral weeks (typically 4-6 weeks)

Required Documents

Discharge authority form

💡

Pro Tips

Request discharge at least 2 weeks before your intended settlement date to avoid delays.
Ensure all your contact details are up to date with the bank to receive timely updates.
Consider negotiating with the bank if you have multiple loans, as they may offer fee waivers.
Keep a detailed record of all communications with the bank during the discharge process.
Double-check all forms for accuracy before submission to prevent processing delays.

Bank of Melbourne Mortgage Calculator

Estimate your repayments using current Bank of Melbourne home loan rates

Over 30 years, borrowing $480,000 at 6.29%, total cost including interest and known fees could be around $1,068,909. Estimated monthly repayment: $2,967.94.

Home loan option

Property price

Your deposit

Loan term (years)Repayment frequency

Estimated total cost over 30 years

$1,068,909

Estimated repayment

$2,967.94

monthly repayment

Amount you borrow: $480,000 · At 6.29% · Variable — can change with the market

This loan can be split between fixed and variable. This estimate uses one option only.

Known fees in this estimate

Settlement fee: $100
Discharge fee: $350
Total ongoing fees (30 yrs): $0

How is this calculated?

Estimated total cost includes the amount borrowed, interest over the full loan term, and any upfront, ongoing, and discharge fees published by the lender. It does not include stamp duty, LMI, or savings from an offset account.

The revert rate is the rate your loan may switch to when a fixed, introductory, or interest-only period ends. Where a lender hasn't published this rate, we use an estimate.

Cost breakdown

Amount you borrow: $480,000
Total interest: $588,459
Upfront fees: $100
Ongoing fees: $0
Discharge fee: $350
Estimated total cost: $1,068,909

These figures are estimates only. Your actual repayments and costs may differ. Confirm all details with your lender before making a decision.
Where a lender hasn't published their revert rate (the rate that applies after a fixed, introductory, or interest-only period ends), we estimate it. Your repayments may change when this period ends.
Split loans and offset accounts aren't included in this estimate.
For product comparison and comparison rates, see the rates table above.

Still Unsure? Let a human handle it.

Not sure if Bank of Melbourne is right for you? Our brokers can help you compare options.

Frequently Asked Questions

Pre-approval typically takes 1-5 business days, while full approval can take 3-10 business days. It's best to have all your documents ready to speed up the process.