Bank of Melbourne Portfolio Loan


The Portfolio Loan is a line of credit loan borrowed against the equity in your property available for owner-occupiers, investors and businesses with flexible repayment options whereby you can choose to make your repayments as often as you want as long as you meet your monthly repayment minimum.

This loan does have a very high variable interest rate, and even though you only repay the interest on line of credit loans, keep in mind that you will be making these payments at least monthly for however long you decide to have this loan, which has no maximum loan term – meaning the total amount you pay in interest increases as the years on your loan go by.

You have the option to fix your interest rate with a moderate rate, but this can only be done on a sub-account, which can also be set at the variable rate of this loan. You can have up to 10 sub-accounts for ownership structures such as other investment properties or for shares.

An unlimited number of extra repayments can be made towards your loan balance on your primary loan account or one of your sub-accounts, as long as the account has a variable rate of interest. There is a limit to how many additional repayments you can make on sub-accounts with a fixed rate.

If you have a Visa debit card or are looking to get one alongside your loan, you have the ability to use this card with your Portfolio Loan to access your line of credit, but make sure you know the added fees and costs of this card.

Only a small deposit is needed for the Portfolio Loan, which gives you the ability to purchase a property or vacant land, and you can use the variable portion of your loan for construction purposes. Though, factor in the cost of lenders mortgage insurance if you make a deposit less than 20 per cent.

The Portfolio Loan can also be packaged with Bank of Melbourne’s Advantage Package, which provides benefits and discounts on your interest rate and fees as well as on other financial products through Bank of Melbourne. There is, however, an annual package fee for this option so decide if you really want these extras before packaging.

Who is the Bank of Melbourne Portfolio Loan good for?

The Portfolio Loan could be a good option for investors looking to have different sub-accounts at variable and fixed interest rates and a loan that offers a line of credit based on the equity of an owned property.

Thus, this loan is most suited for borrowers who know how to manage their funds through separate accounts at differing interest rates in order to make best of the advantages offered from doing this, since the amount of fees for this loan are quite high.

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Even though you will only make repayments towards the interest charged on this loan, the variable rate on your primary account is quite high.

Additionally, the Portfolio Loan has a high upfront cost, a monthly fee and a large discharge fee so the total costs of this loan will add up substantially.

However, if you’re looking for a featured line of credit loan then it’s worth your time to take a closer look at the Portfolio Loan to see if it stacks up against your needs and can pay off for you in the long term.

Bank of Melbourne Portfolio Loan Options

For more information about the variable and fixed rate options on the Portfolio Loan by Bank of Melbourne, follow the corresponding links.

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  • Access to property equity through a line of credit.
  • Flexible repayment schedule.
  • Small deposit required.
  • High variable interest rate.
  • Upfront, ongoing and discharge fees.
  • No redraw facility.

Must be able to provide proof of income.

Must be able to evidence of your deposit.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Investors
  • Refinancers
  • Line of Credit Loans
  • Estimated upfront fees: $800.00
  • Discharge fees: $350
  • Ongoing fees: $14 monthly

The Portfolio Loan has a high amount of fees that contributes substantially to the total cost of this loan with a high entry and exit fee and an ongoing monthly fee.

Though there are many offered benefits, be sure you factor in all of the fees to make sure this loan doesn’t put you in the red.

  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About Bank of Melbourne
As a local bank, Bank of Melbourne invests in the local economy and offers a competitive range of personal and business financial services to its customers. Bank of Melbourne customers have 24/7 access to their funds through telephone, mobile and phone banking as well as through EFTPOS and ATMs.
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