Home Loan Interest Rate News
Following a Reserve Bank of Australia cash rate update
Home Loan Interest Rate News – Tuesday, 3 May 2022
Changes to our variable interest rates
Following the Reserve Bank of Australia’s decision to increase the official cash rate, Bank of Melbourne today announced it will increase variable home loan interest rates by 0.25% per annum (p.a.).
The following interest rate changes will come into effect on Tuesday 17 May 2022 for new and existing home loan variable rate products:
- Owner Occupier Principal & Interest home loan variable rate increasing by 0.25% p.a. to 4.79% p.a. (comparison rate 4.96% p.a.*)
- Owner Occupier Interest Only home loan variable rate increasing by 0.25% p.a. to 5.38% p.a. (comparison rate 5.55% p.a.*)
- Residential Investment Principal & Interest home loan variable rate increasing by 0.25% p.a. to 5.37% p.a. (comparison rate 5.54% p.a.*)
- Residential Investment Interest Only home loan variable rate increasing by 0.25% p.a. to 5.66% p.a. (comparison rate 5.83% p.a.*)
- Please note rate changes also apply to our Basic Home Loans and grandfathered variable rate products.
The above rates exclude any discounts offered under the Advantage Package# and based on LVR+.
What is the impact to my repayments?
Principal and 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 arrangements. If you have a direct debit set up for your home loan repayments, this will be automatically updated, as required, to meet your new minimum monthly repayment amount.
Interest only variable rate home loans
Your repayment changes each month depending on the interest that is charged to your loan. If you have a direct debit set up for your home loan repayments, this is automatically updated each month to meet your interest only repayment.
Fixed interest rate home loans
Repayments are not affected by variable interest rate changes during your fixed rate period.
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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.
#Advantage Package Terms & Conditions (PDF 140KB) apply. A $395 annual package fee applies and is payable from a Bank of Melbourne Complete Freedom transaction account. Before deciding to open a Bank of Melbourne Complete Freedom account, read the Terms & Conditions, and consider if the account’s right for you.
*Comparison Rate: The comparison rate is based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the example 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. Home loan rates for new loans are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan.