Home Loan Interest Rate News
Changes to a range of our variable interest rates - Wednesday, 2 October 2019
Bank of Melbourne announced today a mortgage rate decrease of 0.15%p.a. for new and existing variable home loan customers, which will apply to both owner occupier and investor loans.
The following interest rate changes will come into effect on Wednesday, 16 October 2019:
- Owner occupier principal & interest home loan variable rate decreasing by 0.15% p.a. to 4.79% p.a. (comparison rate 4.96% p.a.*).
- Owner occupier interest only home loan variable rate decreasing by 0.15% p.a. to 5.38% p.a. (comparison rate 5.55% p.a.*).
- Residential investment principal & interest home loan variable rate decreasing by 0.15% p.a. to 5.37% p.a. (comparison rate 5.54% p.a.*).
- Residential investment interest only home loan variable rate decreasing by 0.15% p.a. to 5.66% p.a. (comparison rate 5.83% p.a.*).
- Line of Credit Loan (Portfolio Loan) decreasing by 0.15% p.a. to 6.23% p.a.
Please note rate reductions will also apply to our Basic Loans and some grandfathered variable rate products. The above rates do not include any discounts offered for Advantage Package1 or LVR^^.
Switching from interest only to principal and interest repayments
We offer lower interest rates to customers who make principal and interest repayments to encourage them to pay down their debt and own their home faster.
If you wish to pay your variable home loan sooner by switching to principal and interest repayments, you can do so without paying a switch fee by contacting us on 13 22 66 and we’ll talk through your options.
What is the impact on my repayments?
If you are currently paying interest only repayments on your home loan
Your repayments are adjusted automatically. The repayments will change from the first repayment date after the interest rate change becomes effective.
If you are currently paying principal and interest repayments on your home loan
The contractual repayments will be adjusted and letters will be sent to you. These will detail both the new minimum monthly repayment amount and the date the new repayment commences, ensuring there is time for you to adjust arrangements.
Fixed interest rates home loans
Repayments are not affected by variable interest rate changes during the fixed period of your home loan.
Terms & conditions
Credit criteria, fees and charges apply. Terms & conditions apply. Based on Bank of Melbourne’s credit criteria, residential lending is not available for Non-Australian resident borrowers.
*Comparison rates are based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
^^ LVR stands for the initial loan to value ratio at loan approval. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. For example, a loan of $400,000 to buy a property worth $500,000 results in a loan to value ratio of 80. New Home loan rates are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan.
1 Advantage Package: Advantage Package Terms and Conditions apply. A $395 annual package fee applies and is payable from an eligible Bank of Melbourne transaction account. Before deciding to acquire a Bank of Melbourne transaction account, read the terms and conditions, and consider if the product is right for you. Refer to www.bankofmelbourne.com.au