Bank of Melbourne

Advantage Package

Advertised Rate

2.49

% p.a

Fixed - 1 year

Comparison Rate*

4.01

% p.a

Maximum LVR
Less than 60%
Real Time Rating™

1.90

/ 5
Monthly Repayment

$1,344

based on $300,000 loan amount for 25 years at 2.49%

Advertised Rate

2.49

% p.a

Fixed - 1 year

Comparison Rate*

4.01

% p.a

Maximum LVR
Less than 60%
Real Time Rating™

1.90

/ 5
Monthly Repayment

$1,344

based on $300,000 loan amount for 25 years at 2.49%

Calculate your repayments for this loan

I'd like to borrow

$

Loan term

years

Your estimated repayment

$1,344

based on $300,000 loan amount for 25 years at 2.49%

Bank of Melbourne home loans are available through brokers who can help find the right loan and manage your application at no charge.

Tony Harris

5.0
2 Reviews

Get expert advice from a home loans specialist.

A natural leader, innovator and developer of businesses and their people; Tony’s career over the last 40+ years has spanned Building and Construction, Property and Finance and Community Welfare and Charity. Tony is a serial entrepreneur and former corporate CEO, and for the last decade Tony’s focus has been in the finance industry with a strong bias towards property. Having worked as a mortgage and finance broker, Tony has also lent his expertise to advise and mentor other businesses to overcome challenges and thrive in a competitive and rapidly changing environment. Tony has a passion for Community Welfare and Charity events and founded the Bright Smiles Ride for Oral Health in Indigenous communities, he is a part of the Royal Flying Doctors Service Motorbike Ride and Car Trek which to date has raised over $30 million and he is a Board Member of the One Foundation. He has a proven track record of getting things done with unbridled enthusiasm and a commitment to help make a difference. Tony devotes the remainder of his time to being the best dad he can be, the greatest Grandfather of all time and to pursuing his life-long interest in horses. “I love talking about property and finance and love helping people see their full potential both personally and in their business. I’m always open to having a chat if you would like to reach out!”

Response time: in 12 hours | Our brokers call during business hours between 9.00am to 6.00pm.

Matthew Tinson

Get expert advice from a home loans specialist.

I provide a ‘one stop’ personal service solution for clients seeking finance for life’s needs and purchases. Working together we will discuss your finance needs and financial position. By taking the time to understand what you are planning to achieve, you will benefit from my advice and research on loans available from our extensive panel of more than 30 major bank and non-bank Lenders. You will be provided with a written recommendation to meet your needs today and into the future, taking into consideration loan features important to maintaining your financial flexibility while achieving a highly competitive interest rate and all available discounts. As your personal Credit Adviser, I will provide a level of service that you won’t get from your bank. • Professional Advice – Comprehensive Researched Advice • Choice – Loans from over 30 Bank and Non-Bank Lenders • Personal Service – for more than just the life of your Loan It is important to understand that all loans are provided at the same price that would apply directly from the Lender. In many cases, I am able to achieve additional discounts on rates and bank fees through effective loan structuring. You will save an enormous amount of time and frustration; I will deal with the banks on your behalf, prepare your loan application for approval and manage the process from start to finish. Following the settlement of your loan, you can call on me to advise and guide you for your future lending needs.

Response time: in 31 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Matthew Hayes

5.0
17 Reviews

Get expert advice from a home loans specialist.

Matthew grew up in Canberra, graduating from Erindale College. As part of the Talented Sports Program for Rugby Union, Matthew developed skills in planning, preparation and execution, skills which he utilises as a mortgage broker to help his clients reach and attain their goals. Matthew is friendly and professional, always ensuring his time with you is stress free and pleasant. He does the hard work for you, helping you find the loan which suits you best. Matthew is dedicated to providing his clients with the best possible service, accommodating you at any time, any location, any day of the week.

Response time: in 32 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Promoted

Quick home loan review

For Advantage Package Fixed Rate Investment Loan (Principal and Interest) 1 Year (LVR < 60%)

These are the benefts of this home loan.

  • Interest rates ranked in the best 20%
  • Parents can sign as guarantor
  • Extra repayments and redraw facility
  • Free redraw facility
  • Split account option

These are the drawbacks of this home loan.

  • Limited extra repayments
  • Loan reverts to higher rate after fixed period
  • Ongoing fee
  • Higher than average upfront fee
  • Discharge fee at end of loan
  • Maximum loan amount is limited to 59.9999% of the property's value

Home loan overview

For Advantage Package Fixed Rate Investment Loan (Principal and Interest) 1 Year (LVR < 60%)

Details

Maximum LVR

Less than 60%

Total Repayments

Interest rate type

Fixed - 1 year

Borrowing range

Suitable for

Investors

Loan term range

1 - 30 years

Principal & interest

Interest only

Applicable states

ACT, NSW, NT, QLD, SA, TAS, VIC, WA

Make repayments

Fortnightly, Monthly, Weekly

Features

Extra repayments

Yes - limited to $30000

Redraw facility

Redraw fee: $0

Split interest facility

Loan portable

Repayment holiday available

Allow guarantors

Available for first home buyers

Fees

Total estimated upfront fees

$264

Application fee

$0

Valuation fee

$164

Settlement fee

$100

Other upfront fee

$0

Ongoing fee

$395 annually

Discharge fee

$350

Application method

Online

Phone

In branch

Specials
  • Cashback $3000 refinance cashback
    Apply by 31st August 2021, and settle by 30th November 2021. Owner Occupier (P&I repayments) and Residential Investment loans, with LVR less than 90%. Available on our Advantage Package home loans, with a $395 annual package fee and Basic Home Loans (no annual fee). $250k min loan. Only one $3K cashback offer available per primary applicant within a 12 month period. Excludes refinances from within Westpac Group.^

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FAQs

What are the different types of home loan interest rates?

A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

Fixed rates

These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

Variable rates

With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments. 

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

What is the difference between offset and redraw?

The difference between an offset and redraw account is that an offset account is intended to work as a transaction account that can be accessed whenever you need. A redraw facility on the other hand is more like an “emergency fund” of money that you can draw on if needed but isn’t used for everyday expenses.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

If I don't like my new lender after I refinance, can I go back to my previous lender?

If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

How does an offset account work?

An offset account functions as a transaction account that is linked to your home loan. The balance of this account is offset daily against the loan amount and reduces the amount of principal that you pay interest on.

By using an offset account it’s possible to reduce the length of your loan and the total amount of interest payed by thousands of dollars. 

Example: If you have a mortgage of $500,000 but holding an offset account with $50,000, you will only pay interest on $450,000 rather then $500,000.

What is 'principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

Can I refinance if I have other products bundled with my home loan?

If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

How do I find out my current interest rate and how much is owing on my loan?

Your bank statements and/or your internet banking should show these details. If you are not sure, call your bank or estimate.

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

How do I apply for a home loan pre-approval from Commonwealth Bank?

To apply for a Commbank home loan pre-approval, you can either call the bank at 13 2224 or meet one of the bank’s lending specialists. You can set up a meeting online if you wish. You’ll need to do some homework before contacting the bank, such as gathering information on the kind of properties you’d like to buy and their prices.

Preparing a financial summary, which lists all your income sources as well as significant expenses, can also help determine how much you can afford to borrow. You may also want to check your credit score before applying for pre-approval.

It’s worth remembering that a CBA home loan pre-approval doesn’t guarantee that you’ll get the loan. Once you get the pre-approval, you’ll have about three to six months to decide on a property and apply for the home loan. The bank will then confirm that the property is suitable for the loan before fully approving it.

How to apply for a pre-approval home loan from Bendigo Bank?

Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork. 

Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home. 

With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances. 

To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.

What is Lender's Mortgage Insurance (LMI)

Lender’s Mortgage Insurance (LMI) is an insurance policy, which protects your bank if you default on the loan (i.e. stop paying your loan). While the bank takes out the policy, you pay the premium. Generally you can ‘capitalise’ the premium – meaning that instead of paying it upfront in one hit, you roll it into the total amount you owe, and it becomes part of your regular mortgage repayments.

This additional cost is typically required when you have less than 20 per cent savings, or a loan with an LVR of 80 per cent or higher, and it can run into thousands of dollars. The policy is not transferrable, so if you sell and buy a new house with less than 20 per cent equity, then you’ll be required to foot the bill again, even if you borrow with the same lender.

Some lenders, such as the Commonwealth Bank, charge customers with a small deposit a Low Deposit Premium or LDP instead of LMI. The cost of the premium is included in your loan so you pay it off over time.

What is the difference between a fixed rate and variable rate?

A variable rate can fluctuate over the life of a loan as determined by your lender. While the rate is broadly reflective of market conditions, including the Reserve Bank’s cash rate, it is by no means the sole determining factor in your bank’s decision-making process.

A fixed rate is one which is set for a period of time, regardless of market fluctuations. Fixed rates can be as short as one year or as long as 15 years however after this time it will revert to a variable rate, unless you negotiate with your bank to enter into another fixed term agreement

Variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts however fixed rates do offer customers a level of security by knowing exactly how much they need to set aside each month.