The Finder app is here! 🥳

Get your savings sorted.

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.

$2,000 refinance cashback offer

Bank of Melbourne is offering refinancers a $2,000 cashback for new refinance applications made between 01 April 2020 to 29 May 2020, with settlement by 31 July 2020. This offer is available on Advantage Package and Basic Home loans (owner-occupier principal-and-interest repayments, investor principal-and-interest repayments and investor interest-only repayments).
You need to be refinancing a minimum loan amount of at least $250,000. Excludes refinances from other Bank of Melbourne loans or loans from Westpac, St. George, BankSA and RAMS. Other fees, charges, terms and conditions apply.

Interest Rate Max Insured LVR Max LVR
Special Offer (Investors, IO) LVR above 60% up to 80%
3.59% p.a.
Comparison Rate
3.61% p.a.
80% 60%
Special Offer (Investors, IO) LVR above 80%
3.64% p.a.
Comparison Rate
3.66% p.a.
90% 80%
Special Offer (Investors, IO) LVR up to 60%
3.54% p.a.
Comparison Rate
3.56% p.a.
60% 60%
Special Offer (Investors, P&I) LVR above 60% up to 80%
3.29% p.a.
Comparison Rate
3.31% p.a.
80% 60%
Special Offer (Investors, P&I) LVR above 80%
3.34% p.a.
Comparison Rate
3.36% p.a.
95% 80%
Special Offer (Investors, P&I) LVR less than 60%
3.24% p.a.
Comparison Rate
3.26% p.a.
60% 60%
Special Offer (Owner Occupiers, IO) LVR above 60% up to 80%
4.5% p.a.
Comparison Rate
4.55% p.a.
80% 60%
Special Offer (Owner Occupiers, IO) LVR up to 60%
4.45% p.a.
Comparison Rate
4.50% p.a.
60% 60%
Special Offer (Owner Occupiers, P&I) LVR above 60% up to 80%
2.74% p.a.
Comparison Rate
2.76% p.a.
80% 80%
Product NameBank of Melbourne Basic Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$30,000
Minimum Loan TermN/A
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
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$500 (waived for loans above $150,000)
Valuation FeeFrom $164
Ongoing Fees$0 p.a.
Settlement Fee$100
Discharge Fee$350

Pros

  • Competitive rates
  • $0 ongoing fees
  • Redraw facility

Cons

  • There is a $100 settlement fee
  • There is a $350 discharge 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. 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?

  • Establishment fee: $0. This fee is waived when borrowing over $150,000.
  • 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 think that the Bank of Melbourne Basic Home Loan could work for you, click the green button to get in touch with a lending specialist from the bank. Make sure you have the following information on hand:

  • Employment details including addresses and phone numbers
  • Income details including assets
  • Details of any other loans (personal or home), credit card debts or store cards

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, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

Bank of Melbourne Basic Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $500 (waived for loans above $150,000) / $0

  • Max LVR

    80%

Ask a question
Go to site