Bank of Melbourne Standard Variable Loan

Features

The Bank of Melbourne Standard Variable Loan is a basic home loan has a range of features but high variable rates to match.

There is, however, a split loan option so you could take advantage of splitting your loan with another option at a fixed rate.

Principal and interest repayments can be made on a flexible weekly, fortnightly or monthly schedule and you can choose to make interest-only repayments for a specified term, but these can only be made monthly.

Investors will be attracted to this loan because the interest-only option is available for a much longer term than it is to owner-occupiers.

An unlimited number of additional repayments can be made towards your Standard Variable Loan without penalty, which could help you to repay your loan early. But, you can still have some security in knowing you can redraw upon these funds through the redraw facility, however you must be approved by Bank of Melbourne beforehand.

If you need to take a break from making your repayments due to leave of employment, you have the option to take a repayment pause for an approved period decided by Bank of Melbourne.

First home buyers could also benefit from the Standard Variable Loan since you only need to make a small deposit to qualify for this loan and you can bypass having to pay lenders mortgage insurance – which is payable if you have a deposit smaller than 20 per cent – with the family guarantee option. This secures a percentage of the property of family member as a portion of your total loan, which can help to serve as your deposit.

Your Standard Variable Loan can be packaged with the Advantage Home Loan Package from Bank of Melbourne, which would provide a discount on your interest rate, discount on your fees and extra benefits on other Bank of Melbourne financial products. These discounts come at a price, though, through its large annual package fee.

Who is the Bank of Melbourne Standard Variable Loan good for?

The Standard Variable Loan is available as a home or investment property loan and has features to suit a first home buyer, such as family guarantee and the ability to make a small deposit.

Review - What RateCity says

It’s hard to overlook the high interest rate and fees associated with this loan, although there are a number of features that could be suitable should they be exactly what you’re looking for in a variable home loan.

As with any large purchase, especially the purchase of a property, it’s a good idea to weigh the pros and cons of any loan and do a close comparison against your needs checklist in order to make a decision on whether this is the most suitable option for you or not.

Bank of Melbourne Standard Variable Loan Options

Read more information about the Bank of Melbourne Standard Variable Loan options by clicking the below links.

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Variable Rates from

4.69%

Advertised rate

4.86%

Comparison rate
Pros
  • 100 per cent offset account.
  • Early repayments and redraws allowed.
  • Family guarantee option.
Cons
  • High variable interest rates.
  • High amount of entry and exit fees.
  • Monthly fee.
Eligibility

Must be able to provide proof of income.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $864.00
  • Discharge fees: $350
  • Ongoing fees: $10 monthly

The Standard Variable Loan has a high upfront cost charged for your establishment, valuation and third party fees, as well as a monthly fee and a high discharge fee that will be due when you complete your loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Bank of Melbourne
Bank of Melbourne is headquartered in Melbourne, but has an extensive branch reach across Victoria. The bank prides itself on being a local bank and contributor to the local economy and offers its community members personal and business banking and financial products and services.
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