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.

$4,000 online only refinance cashback offer

Bank of Melbourne is offering refinancers a minimum $4,000 cashback. This offer consists of a $2,000 cashback per property (applications between 23 September 2019 and 30 April 2020, with settlement by 30 June 2020) and $2,000 cashback per online application (applications between 11 November 2019 and 31 January 2020, with settlement by 31 March 2020).

You will need to be refinancing a minimum loan amount of at least $250,000. Excludes refinances from other Bank of Melbourne home loans or loans from Westpac, St. George, BankSA and RAMS.

Special offer

The establishment fee is $0 on loans with principal and interest repayments over $150,000.

Interest Rate Max Insured LVR Max LVR
LVR above 60% up to 80% (Owner Occupiers, P&I)
2.99% p.a.
Comparison Rate
3.01% p.a.
80% 80%
Special Offer (Investors, IO) LVR above 60% up to 80% New customers
3.84% p.a.
Comparison Rate
3.85% p.a.
80% 60%
Special Offer (Investors, IO) LVR above 80% New customers
3.89% p.a.
Comparison Rate
3.90% p.a.
90% 80%
Special Offer (Investors, IO) LVR up to 60% New customers
3.79% p.a.
Comparison Rate
3.80% p.a.
60% 60%
Special Offer (Investors, P&I) LVR above 60% up to 80% New customers
3.54% p.a.
Comparison Rate
3.56% p.a.
80% 60%
Special Offer (Investors, P&I) LVR above 80% New customers
3.59% p.a.
Comparison Rate
3.61% p.a.
95% 80%
Special Offer (Investors, P&I) LVR less than 60% New customers
3.49% p.a.
Comparison Rate
3.51% p.a.
60% 60%
Special Offer (Owner Occupiers, IO) LVR above 60% up to 80% New customers
4.75% p.a.
Comparison Rate
4.80% p.a.
80% 60%
Special Offer (Owner Occupiers, IO) LVR above 80% New customers
4.8% p.a.
Comparison Rate
4.85% p.a.
95% 80%
Special Offer (Owner Occupiers, IO) LVR up to 60% New customers
4.7% p.a.
Comparison Rate
4.75% p.a.
60% 60%
Special Offer (Owner Occupiers, P&I) LVR above 80% New customers
3.04% p.a.
Comparison Rate
3.06% p.a.
95% 80%
Special Offer (Owner Occupiers, P&I) LVR up to 60% New customers
2.94% p.a.
Comparison Rate
2.96% p.a.
60% 60%
Product NameBank of Melbourne Basic Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$30,000
Maximum Loan Amount$2,000,000
Minimum Loan Term1 year
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 (waived for loans above $150,000)
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 and a maximum loan amount of $2,000,000. 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

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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%

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