Bank of Melbourne Basic Home Loan review

Keep your repayments low with this no-frills variable rate home loan.

If you're after a no-frills home loan that offers flexibility and a low rate, the Bank of Melbourne Basic Home Loan is worth a look.

Interest Rate Max Insured LVR Max LVR
Promotional Rate (Investors, IO)
4.89% p.a.
Comparison Rate
4.90% p.a.
95% 80%
Promotional Rate (Investors, P&I)
4.19% p.a.
Comparison Rate
4.20% p.a.
95% 80%
Promotional Rate (Owner Occupiers, P&I)
3.64% p.a.
Comparison Rate
3.65% p.a.
95% 80%
Regular Rate (Owner Occupiers, P&I)
4.62% p.a.
Comparison Rate
4.67% p.a.
95% 80%
Product NameBank of Melbourne Basic Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$30,000
Maximum Loan Amount$249,999
Minimum Loan Term3 years
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$500
Ongoing Fees$0 p.a.
Settlement Fee$100
Discharge Fee$350

Pros

  • $0 ongoing fees.
  • Redraw facility.

Cons

  • No offset account.
  • $500 application fee.

What do I need to know about this loan?

The Bank of Melbourne Basic Home Loan offers a special promotional variable rate for owner-occupiers on principal and interest repayments.

What are the feature and benefits of the Bank of Melbourne Basic Home Loan?

  • Loan amount and loan-to-value ratio (LVR). The Bank of Melbourne Basic Home Loan has a minimum loan amount of $30,000 and a maximum loan amount of $249,999. You can borrow up to 95% of the value of the property. While borrowing more than 80% will incur a lenders mortgage insurance (LMI) premium, Bank of Melbourne offers a Family Pledge that can help you avoid LMI.
  • Repayment type and frequency. The Bank of Melbourne Basic Home Loan offers weekly, fortnightly or monthly repayments, and you can make as many additional repayments as you like without penalty.
  • Redraw facility. You can access any extra repayments you've made using the loan's redraw facility. There is a $0 fee for redraws.
  • No ongoing fees. You won't pay any application or ongoing fees for the Bank of Melbourne Basic Home Loan.

What fees and charges come with this loan?

  • Settlement fee: $100. This one-off fee covers the costs of setting up your loan account.
  • Discharge fee: $350. The discharge fee is charged when you close your loan account either by refinancing or paying off your home loan.

How do I apply for this loan?

If you’ve compared home loans and think that the Bank of Melbourne Basic Home Loan is the right mortgage product for you, click the button below to be taken to the Bank of Melbourne website where you'll be guided through the application process.


Enquire about this home loan
Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

Bank of Melbourne Basic Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $500 / $0

  • Max LVR

    80%

Ask a question
Go to site