Bank of Melbourne home loan review

Updated 23 Sept 2026

Bank of Melbourne is an established Australian lender, and Ratesniffers tracks 50 of its home loan products across variable, fixed and interest-only options. Its lowest variable rate Ratesniffers tracks is 6.39% p.a., and its lowest fixed rate is 6.44% p.a. That sits about 20 basis points above the market median of 6.19% p.a., so sharper variable rates exist elsewhere today.

Is Bank of Melbourne a good home loan lender?

Bank of Melbourne suits Victorian borrowers who want branch access with Westpac Group product breadth, including a 12 month Relocation Loan for buying before selling. Ratesniffers checked its published product, fee and scheme pages on 2 Sept 2026. The trade-off is that the offset sits on the packaged loan, not the fee free Basic.

What we looked at

Ratesniffers ranked and described this lender from the verified rate snapshot on this page, then read the lender's own published product pages and fee documents listed under Sources below. Sources were checked on 2 Sept 2026. There are no scores, no stars and no user reviews here, only what the lender publishes and what the snapshot shows.

Products tracked

Lowest variable

6.39%

Lowest fixed

6.44%

Lowest comparison

6.40%

*Important Information and Comparison Rate Warning

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is based on a loan of $150,000 over a term of 25 years.

The information provided on this site is general in nature and does not take into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for you and read the relevant Credit Guide and lender disclosures.

Bank of Melbourne home loan interest rates by term

The lowest owner-occupier, principal and interest rate Bank of Melbourne has published per term, from the same rate snapshot as the panel above.

Term	Interest rate	Comparison rate
Variable	6.39% p.a.	6.40% p.a.
1-year fixed	6.54% p.a.	6.87% p.a.
2-year fixed	6.44% p.a.	6.85% p.a.
3-year fixed	6.64% p.a.	6.91% p.a.
5-year fixed	6.79% p.a.	7.00% p.a.

The case for

The Basic Home Loan carries a $0 establishment fee and a $0 monthly account keeping fee, with unlimited extra repayments and fee free redraw of up to $100,000 a day online or by phone and $30,000 in branch.
The Advantage Package costs $395 a year and removes the establishment fee and the ongoing monthly fees on packaged variable and fixed loans.
The Relocation Loan is a 12 month bridging loan for owner occupiers buying a new home or land before selling the current one, with interest capitalised so no repayments are required during the bridging period, capped at 70% LVR.
Bank of Melbourne is a participating lender in the Australian Government 5% Deposit Scheme, on owner occupier principal and interest loans only, from a 5% deposit for eligible first home buyers and 2% for eligible single parents or guardians, with no lenders mortgage insurance.
Rent paid through a licensed agent for at least six months can count as genuine savings on owner occupier loans.

What to weigh up

Its sharpest variable rate sits above the market median of 6.19% p.a. in the rate snapshot on this page.
The Basic Home Loan carries no offset account, so an offset means the Standard Variable Rate loan and, in practice, the $395 Advantage Package.
The Relocation Loan lists a $600 establishment fee, an $8 monthly fee, a $100 document processing fee and a $350 discharge fee, and carries no redraw.
The Relocation Loan is not available for investment properties, debt consolidation or trust borrowing, and extensions beyond 12 months are subject to credit approval.
Interest only repayments are not available under the Australian Government 5% Deposit Scheme.
Bank of Melbourne home loans are available only to Australian residents, and the Westpac Group prices Westpac, St.George and BankSA separately.

Who Bank of Melbourne suits and who it does not

Bank of Melbourne tends to suit Victorian borrowers who want big bank product breadth and branch access from a challenger brand, owner occupiers who need to buy before they sell and can work inside the Relocation Loan's 12 month term and 70% LVR cap, and first home buyers using the government deposit scheme. It suits less well outside Victoria, where the same group products sit under Westpac or St.George, for investors or trusts wanting the Relocation Loan, and for anyone who wants an offset without paying the $395 Advantage Package fee.

Bank of Melbourne products in detail

Bank of Melbourne Relocation Loan

The Relocation Loan is Bank of Melbourne's bridging product for owner occupiers buying a new home or land before selling the current one. It runs for 12 months, capitalises interest so no repayments are required during the bridging period, and is capped at 70% LVR. Extensions may be available subject to credit approval. Published costs are a $600 establishment fee, an $8 monthly fee, a $100 document processing fee and a $350 discharge fee, and there is no redraw. When the existing home sells, the balance is repaid from the proceeds and any remaining debt converts to a standard home loan. It is not available for investment properties, debt consolidation or trust borrowing.

Bank of Melbourne home loans: our verdict

Bank of Melbourne is a credible choice whose lowest variable rate of 6.39% p.a. currently sits about 20 basis points above the market median, so it's worth comparing before you commit (last updated 23 Sept 2026). Whether it's right for you comes down to your deposit, the features you'll use, and how its real approved rate compares, so treat the headline as a starting point, not the final answer.

Sources checked 2 Sept 2026: Bank of Melbourne, Home loans; Bank of Melbourne, Basic Home Loan; Bank of Melbourne, Relocation Loan; Bank of Melbourne, First home buyers; Bank of Melbourne, Australian Government 5% Deposit Scheme. Fees and product terms change, so confirm them with Bank of Melbourne before applying.

See if you can do better than Bank of Melbourne

The advertised rate isn't always the rate you'll be approved for. Compare Bank of Melbourne against the wider panel, or have your scenario negotiated, at no cost.

See Bank of Melbourne rates

Bank of Melbourne home loans: frequently asked questions

Is Bank of Melbourne good for home loans?

Bank of Melbourne fits Victorian borrowers who want branch access and Westpac Group product breadth, with a fee free Basic Home Loan and a 12 month Relocation Loan for buying before selling. It fits less well if an offset is the priority, since the Basic carries none and the offset sits on the packaged loan at $395 a year. Checked 2 Sept 2026.

Is Bank of Melbourne the same as Westpac?

Bank of Melbourne is a Westpac Group brand but runs as its own bank, with its own Victorian branch network and its own pricing, sharing much of its product set with St.George and BankSA. Because each group brand prices separately, a Bank of Melbourne rate can differ from the Westpac rate on an otherwise similar loan. Checked 2 Sept 2026.

What fees does Bank of Melbourne charge on a home loan?

The Basic Home Loan has a $0 establishment fee and a $0 monthly account keeping fee. Packaged variable and fixed loans pay $395 a year for the Advantage Package, which removes the establishment fee and ongoing monthly fees. The Relocation Loan lists a $600 establishment fee, an $8 monthly fee, a $100 document processing fee and a $350 discharge fee. Checked 2 Sept 2026.

Does Bank of Melbourne do bridging loans?

Yes. The Relocation Loan is a 12 month bridging loan for owner occupiers buying a new home or land before selling the current one. Interest is capitalised so no repayments are required during the bridging period, lending is capped at 70% LVR, and extensions are subject to credit approval. It is not available for investment properties, debt consolidation or trust borrowing. Checked 2 Sept 2026.

Can I get a Bank of Melbourne home loan with a 5% deposit?

Yes. Bank of Melbourne is a participating lender in the Australian Government 5% Deposit Scheme, so eligible first home buyers can apply from a 5% deposit and eligible single parents or guardians from 2%, with no lenders mortgage insurance, on an owner occupier principal and interest loan. Interest only repayments are not available under the scheme. Checked 2 Sept 2026.

How do Bank of Melbourne's home loan rates compare to the market?

Bank of Melbourne's sharpest variable rate currently sits about 20 basis points above the market median of 6.19% p.a., so sharper rates exist elsewhere today. This is computed from the live rates across the lenders Ratesniffers tracks, checked daily against each lender's current published pricing, so it reflects where Bank of Melbourne stands right now rather than a fixed snapshot.

Does Bank of Melbourne offer an offset account?

Yes, an offset account is available on at least some Bank of Melbourne products. An offset only saves interest on the balance you keep in it, so it's worth most when you hold a steady amount; confirm it's included on the specific product you apply for.

How often is this Bank of Melbourne review updated?

The rate figures in this review are rates as at 27 August 2026, and this page was last updated 23 Sept 2026. The pros, cons and verdict are built from the live products Ratesniffers tracks, so they move with Bank of Melbourne's rates rather than staying a static snapshot.