Products & features

Bank of Melbourne Family Pledge is a way for your parents or family to help you purchase a home without actually providing money for a deposit. Instead, your parents or family use their own home equity to provide additional security for a portion of your loan amount.

This solution reduces your loan to value ratio and can also save you a significant amount of money in Lender's Mortgage Insurance (LMI). Lender's Mortgage Insurance is generally payable on loans that exceed 80% of the value of the property. Learn more about Family Pledge.

A home loan offset account is a savings account linked to your loan. The balance in the savings account is offset against the amount owing on the home loan when interest is calculated. This means that savings in your offset account will help you to save money and repay your home loan sooner.

Most of our loans do allow you to switch to a fixed interest rate, and switching is easy. Call us on 13 22 66 and we can give you the current rates and start the process for you. You can also compare interest rates now. Fixed rates are available for terms of one to five years. A switch fee may apply.

Yes. If you're self-employed or have a small business, you can apply for a Low Doc Loan or a Low Doc Portfolio Loan without providing standard financial documentation. You will however, need to provide:

1. Your ABN/ACN
2. Last 12 months Business Activity Statements (BAS)
3. Loan statements for past 6 months for loans that are being refinanced with a Low Doc Loan
4. Latest account statements on any other debts or loans that are not being
refinanced with your Low Doc Loan

Yes. If you want to talk to a Bank of Melbourne home loan expert, call us on 13 22 66.

Yes. Our Portfolio Loan allows you to have up to ten separate sub-accounts to keep your owner-occupied and various investment accounts separate.

Principal and interest repayments means that you pay the interest on the loan each month plus an amount that will repay your loan off in the defined term (for example, 30 years). Principal and interest repayments will reduce the outstanding balance each month.

With interest only repayments you will pay the interest charged to your loan in that month plus any applicable fees and charges. Interest only repayments will not reduce the outstanding balance. At the end of your interest only repayment period (which can be up to 5 years for Owner Occupier^## loans and up to 10 years for Residential Investment^### loans), you will make principal and interest repayments to pay the outstanding balance in full by the end of the agreed loan term.

Find out more about Home Loan Repayment Types

A standard home loan has a set term. You can generally choose to pay principal and interest or interest only for a period of time. The loan must be paid off within the agreed term. A Line of Credit is an approved limit that can be drawn on at any time. There is no set term and the minimum repayment required is interest and fees only. Learn more about our line of credit loan, Portfolio Loan.

Yes, you may be able to use a Portfolio Loan for business purposes. You may also want to consider a Business Maximiser Loan.

An overdraft is generally a limit attached to a transaction account and is usually unsecured. A Portfolio Loan is secured by residential property and is one overall approved limit that can be used for a home and other investments of your choice. You can open up to 10 sub-accounts to make managing your investments easier, and choose a mix of variable and fixed interest rates¹. You also get individual monthly statements for each sub-account to streamline your record keeping.

Yes, a range of our variable rate loans give you the option to progressively draw down if you are constructing or renovating your home. This allows us to schedule progress payments to builders after each stage is completed and lets you save on interest charges. Take a look at our Building Loan and Portfolio Loan.

One option is to set up automatic repayments from a nominated account, transfer money from another Bank of Melbourne account via Phone, Mobile Banking or Internet Banking² or make a payment at any Bank of Melbourne branch.

All of our home loan contracts require you to make monthly repayments. However, when making principal and interest repayments, you can generally choose to make your repayments fortnightly or weekly. Fortnightly repayments are calculated as half of the monthly repayment and weekly repayments are calculated as a quarter of the monthly repayment.

The ability to make additional payments depends on the type of home loan you have. With fixed interest rate home loans, you may make additional payments (over and above your contracted repayments) of $10,000 per year without cost. If you make more than $10,000 in additional payments, you may be liable for break costs. You can make unlimited additional payments on a variable rate home loan. Calculate how much you'll save when you make extra repayments.

Depending on the home loan you choose, there may be a cost for repaying it early. Our introductory home loans (Discount Variable Rate and One Year Introductory Fixed Rate) carry an early termination fee based on a percentage of the loan amount as at the day of discharge. This fee is payable if the loan is discharged within a certain time frame.

Other home loans have a flat fee payable if the loan is discharged within a certain time frame. These fees are clearly stated in our home loan fees and charges documentation so you can make an informed decision about the best home loan for your needs.

There are a number of variables that influence whether you'll need Lender's Mortgage Insurance and it is not necessary in all circumstances. Generally it is required if you are borrowing more than a specific value of the property (normally when you are borrowing more than 80%), however this condition varies depending on property type, location of the property, loan type, etc.

Lender's Mortgage Insurance protects the Bank against loss in the event that you default on the loan. In the case of a mortgagee excersising power of sale, if the property is subsequently sold at a price that does not cover the loan in full, this insurance will cover the debt owed to the Bank.

Bank of Melbourne offers competitive insurance to cover your needs, including home, contents and landlord insurance.

We have a large selection of home loan options to meet your individual needs. Our Home Loan Product selector may help you to choose the right home loan that suits you. You can also compare home Loan features or call a Bank of Melbourne home loan expert on 13 22 66.

Rate Lock lets you secure an advertised Bank of Melbourne Fixed Rate, up to 90 days before your new Fixed Rate home loan settles or the interest rate period on your current Bank of Melbourne home loan ends⁴. Once secured, this rate is known as the 'locked rate'. This way, for a fee, you are protected from potentially rising interest rates.

Upon settlement, if the advertised rate for your selected fixed rate period is below your 'locked rate', you will receive the lower advertised rate. However if interest rates have risen, you will receive your ‘locked rate'. Learn more about Rate Lock.

A variable interest rate moves up and down with market conditions. Your loan repayments may increase or decrease to reflect interest rate changes. Variable rate loans provide you with flexibility to make additional repayments, redraw on those additional funds and take advantage of a 100% interest offset facility.

A fixed interest rate will not change for the fixed rate period (choose a term from one to five years). Your repayments will remain constant, which can be useful for budgeting purposes. However, features such as unlimited additional repayments and 100% interest offset are not available with fixed rate loans.

Most Bank of Melbourne home loans allow you to split the loan into a variable portion and a fixed portion. If your home loan is currently fixed, you will need to break out of your fixed rate to split the loan and a fee applies.

A split loan gives you the flexibility of a variable rate loan and the security of a fixed rate loan. Our split loan, called Flexible Choice, is a combination of up to 4 separate loan sequence, secured by the same properties. By nominating portions of your loan as fixed and the remaining portions as variable, you can protect yourself and hedge against rising interest rates. Use the flexibility of the variable portion to help pay off that part of your home loan faster, particularly if interest rates decrease.

• Interest in Advance is a repayment option that offers an additional interest rate discount for paying interest in advance for customers with a Fixed Rate Investment Loan.  Customers can choose to pay Interest In Advance for  3 – 13 months and will receive the discount only during that period⁵.
• In order to receive the interest in advance discount, you must have the Interest in Advance payment automatically deducted from your Bank of Melbourne transaction account⁵.
• By prepaying interest you could potentially reduce your tax liability for the coming financial year and conveniently consolidate interest repayments into one lump sum payment.
• The taxation position described is a general statement and should only be used as a guide.  It does not constitute tax advice and is based on current tax laws and their interpretation. This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.

• New and existing customers will be eligible for Interest in Advance by meeting all three loan conditions:
  • Fixed Interest Rate
  • Investment Loans (excluding line of credit loans^####)
  • Interest Only Repayments
• Customers with existing Investment Loans can switch to an Interest in Advance payment type upon request.
• Existing Interest in Advance customers with fixed rate terms expiring will receive a letter 4 – 6 weeks prior to fixed rate expiry period advising of the maturity details and to review their future arrangements.
• New customers can establish an Interest in Advance loan through our standard application process.

Depending on your repayment type you may be eligible for either Mortgage Equaliser Offset or Repayment Offset

Mortgage Equaliser Offset

• Available to eligible Variable rate home loan customers with principal and interest repayments
• The balance from the nominated accounts is offset against the balance outstanding on your loan.

Repayment Offset

• Available to eligible Variable rate home loan customers with interest only repayments
• The customer must have their repayment set up as an automatic transfer or external direct debit from nominated accounts.
• The interest from the balance of the nominated accounts is offset against the minimum monthly repayment amount, leaving the loan balance and loan term untouched.

• Available to customers with eligible Fixed rate loans
• For the portion of the Home Loan equal to the balance in the linked transaction account, a reduced interest rate is charged