Bank of Melbourne Variable Home Loan - Owner Occupied - Variable

Ratings

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About this rate option

This Bank of Melbourne Variable Home Loan rate option applies to owner-occupiers making interest-only repayments on a variable rate, which can move when the lender changes its rates. The interest rate is 7.29%, with a comparison rate of 6.73%, and borrowing is limited to 70% of the property value, meaning a deposit of at least 30% is required. Repayments can be made weekly, fortnightly or monthly, and unlimited fee-free extra repayments and redraw are available. After the interest-only period, repayments revert to principal-and-interest.

This summary was generated from Bank of Melbourne’s published product data for this specific rate option. Always confirm current rates with the lender.

About Variable Home Loan

Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.

LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.

Fees & Costs

A 100% offset account is an account linked to your home loan where you can park your savings and spare cash to reduce the interest you pay. Then, when interest is calculated on your home loan, the balance in your offset account is deducted from the loan amount owing, and interest is only charged on what remains.
Bank of Melbourne charge a discharge fee of $350, which covers the cost for removing the mortgage that has been registered on the title of your property.

Borrowing Limits

An LVR of 90% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
An LVR of 95% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
Interest only option for Bank of Melbourne Variable Home Loan is not available at 95% LVR. Bank of Melbourne will only consider interest only if your home loan is 90% or less of the property value.

Eligibility

Interest only repayment option is not available with Bank of Melbourne Variable Home Loan for buying next home.
Interest only repayment option is not available with Bank of Melbourne Variable Home Loan for refinance.

💡 Tip: To get approved for an interest only home loan you need to have a strong enough income to afford principal and interest (P&I) repayments once your interest only term expires. Sometimes extending your interest only period can be tough and getting approved for a P&I refinance is a lot easier.

IMPORTANT:Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Bank of Melbourne or a mortgage broker just to be sure. This information should be used as a guide only.

Other rate options for Variable Home Loan

Refinance Variable · Principal & Interest 0 Years · 70% LVR

8.69%

Refinance Variable · Principal & Interest 0 Years · 80% LVR

8.79%

Refinance Variable · Principal & Interest 0 Years · 95% LVR

9.09%

Investment Variable · Interest Only 0 Years · 70% LVR

6.89%

Investment Variable · Interest Only 0 Years · 80% LVR

6.99%

Investment Variable · Interest Only 0 Years · 90% LVR

7.29%

Investment Variable · Principal & Interest 0 Years · 70% LVR

6.54%

Investment Variable · Principal & Interest 0 Years · 80% LVR

6.64%

Investment Variable · Principal & Interest 0 Years · 95% LVR

6.94%

Construction Variable · Principal & Interest 0 Years · 80% LVR

8.79%

Construction Variable · Principal & Interest 0 Years · 95% LVR

9.09%

Owner Occupied Variable · Interest Only 0 Years · 70% LVR

7.29%

Frequently Asked Questions

Are there costs when I exit or refinance to another lender?

Bank of Melbourne charge a discharge fee of $350, which covers the cost for removing the mortgage that has been registered on the title of your property.

Does Bank of Melbourne Variable Home Loan comes with an offset account?

Yes, Variable Home Loan comes with a 100% offset account. A 100% offset account is an account linked to your home loan where you can park your savings and spare cash to reduce the interest you pay. Then, when interest is calculated on your home loan, the balance in your offset account is deducted from the loan amount owing, and interest is only charged on what remains.

What are the costs to apply for Bank of Melbourne Variable Home Loan?

There is upfront costs of $700 to apply for Variable Home Loan. Application fee: $600
Settlement fee: $100 Variable Home Loan also comes with ongoing account fees of $96 per year. Monthly fee: $8 per month

Fees

Application fee

Important Information

Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Bank of Melbourne or a mortgage broker just to be sure. This information should be used as a guide only.