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Variable home loan interest rate decrease

Tuesday, 20 May 2025 announcement

Following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate, Bank of Melbourne today announced a 0.25% per annum (p.a.) decrease to our variable home loan interest rates, for new and existing home loans.

These variable rate changes will come into effect on Tuesday 3rd June 2025.


Estimate your new repayments

What this means for your repayments

Principal & Interest variable rate home loans

We’ll send a letter with details of the new minimum monthly repayment amount and when this starts, giving you time to adjust your payments. If you’ve set up a direct debit or automatic payment arrangement for your home loan repayments, your minimum monthly repayment will automatically be adjusted to meet your new minimum monthly repayment amount.

 

Interest Only variable rate home loans

Your repayment changes each month depending on the interest charged to your loan. If you’ve set up a direct debit or automatic payment arrangement for your home loan repayments, this will continue to be automatically updated to meet your Interest Only repayment.

 

Fixed interest rate home loans

Repayments aren’t affected by variable interest rate changes during your fixed rate term.

 

FAQs

You can instantly check your current rate, repayments and balance by logging into our App or Internet Banking and selecting your home loan account.

Alternatively, you can request a callback or visit a branch.

Get a home loan health check and rate review  

Your Bank of Melbourne home loan’s been designed to evolve with you, and we’re here to help fine-tune your loan so you can become mortgage-free sooner. Remember, there’s no fee to switch between our variable loans, or between Interest Only and Principal & Interest repayments. Call through our App to skip the security questions (tap Contact us).

 

Helpful resources

Changes to your repayments

Use our calculator to work out how interest rate changes may impact your loan repayments.

Tips to get ahead

Tackle interest rate fluctuations and discover how to own your home earlier.

Terms & conditions

Credit criteria, fees and charges apply. Based on Bank of Melbourne credit criteria, residential lending is not available for Non-Australian resident borrowers.

1Changing repayment amount or frequency: Cannot be performed on an interest-only loan. However, you may make extra repayments. For more details on interest-only home loans.

The interest rates used in the calculator: 

  • are current, as indicated on our home loan interest rate pages;
  • are Bank of Melbourne’s standard interest rates and include any package or promotional discounts; and
  • are subject to change.

The output or result of these calculators: 

  • is subject to the assumptions which are subject to change;
  • is prepared without knowing your personal financial circumstances. Before you act on the output of the calculators, please consider if it’s right for you. If you need more information, please call 13 22 66. We recommend that you consult your financial adviser before taking out a loan;
  • does not represent either a quote or pre-qualification for a loan;
  • may not be taken into account if you apply for a loan with us as we will make our own calculations. When assessing ability to service a loan, Bank of Melbourne may use an interest rate that is higher than the current interest rate for the loan requested