flagFounded: Founded in 1989, relaunched by Westpac in 2011

businessOwned by: Owned by Westpac, operated by St George Bank

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: Westpac LMI (WLMI)and Arch Capital (WLMI –A)

account_balanceLender type: Subsidiary of a Major Bank

Westpac has owned the rights to the Bank of Melbourne brand since 1989, but it was only after they saw that their subsidiary St George Bank wasn’t doing well in the Victorian market that they decided to relaunch Bank of Melbourne.

Bank of Melbourne is actually just a rebranded version of St George Bank!

They’ve got the pricing and systems of a major bank along with a focus on serving the Victorian market. Their home loans are often well priced as they’re trying to gain a foothold, particularly with customers that use mortgage brokers.

Westpac sees St George and Bank of Melbourne as being the first choice for first home buyers while Westpac tends to have high net worth investors.

How do Bank of Melbourne’s home loans compare?

They’re great at

But they’ve got some drawbacks…

  • LMI can be expensive if you’re borrowing over 90% of the property value
  • Complex loans that don’t meet standard bank policy
  • People with bad credit
  • If you live outside of Victoria, you’ll be referred to St George Bank
  • Slow loan processing times when busy
  • For self-employed borrowers, they are very conservative and require a consistent income over the last two years.

Coronavirus / COVID-19: Bank of Melbourne home loan policy changes

Bank of Melbourne has announced the following home loan lending policy changes reacting to the negative economic outlook caused by COVID-19:

  • Removal of special LMI waiver home loans for accountants, lawyers, mining professionals, and entertainers.
  • Waived LMI home loans for medical professionals is still avalilable albeit with a reduction in the maximum loan to value ratio.
  • For all PAYG and casual employees, they now require a payslip no more than 14 days old (or 1 month for monthly pay cycles) at the time of application submission.
  • For self-employed borrowers, they now require last quarter BAS (e.g. after 30 April, March quarter BAS must be used). And the corresponding BAS for the same quarter from last year as well as the last 3 months bank statements/transaction summaries (all trading accounts) no older than 14 days.

Lenders are constantly changing their policies, so please get in touch with us before submitting your application.

Coronavirus / COVID-19: Bank of Melbourne mortgage relief

Bank of Melbourne customers who have lost their job or suffered loss of income
as a result of COVID-19 can contact the bank for three months deferral on their home
loan mortgage repayments, with extension for a further three months available
after review.

You may be able to pause your mortgage repayments for up to six months.

However, please note that interest continues to accrue on your home loan, and is added (capitalised) on to your home loan balance. Your home loan balance will have increased at the end of this repayment holiday.

What home loans types do they have?

Bank of Melbourne has all the same home loans that St George Bank has.

Their professional package is known as the Advantage Package and it’s a great choice if you are borrowing over $250,000. In return for paying an annual fee you’ll get a discounted interest rate and a range of discounts on other products such as your offset account and credit card.

Their basic loan has no annual fees, but normally has a higher rate, and so it is more suited to people who have smaller loans. BOM has a Line of Credit known as a Portfolio loan which is a great choice for investors that buy and sell property or shares regularly.

Keep an eye out for specials that BOM offers from time to time on fixed rate loans. When these are on offer they can be some of the lowest in the market.

Their low doc loan isn’t the most competitive and has strict qualifying criteria so isn’t in high demand.

Tips for getting a great rate with Bank of Melbourne

Most lenders don’t offer great interest rate discounts on 90% or 95% home loans, however Bank of Melbourne is one of the exceptions!

If you don’t have a deposit then their family pledge loan is a type of guarantor loan that can be used to buy a home with help from your parents.

Use Bank of Melbourne’s minimum required documents checklist to prepare for your home loan application.

Note: This is the latest home loan checklist as of June 2019. Please refer to Bank of Melbourne for their most up-to-date document requirements.

Bank of Melbourne client story: Stuart, Vic


  • To buy his second home and rent out his first.
  • Needed to get his stratum title unit purchase approved.


Stratum title, cash out equity, investment.


Coming to the end of the fixed period on his Rams home loan, Stuart cash out some equity in his home to buy a unit that was much closer to his place of work.

Combined with his own savings, Stuart had a considerable deposit to put down.

Despite having a good deposit and a great income, the unit that Stuart wanted to buy was stratum title, a unique property title that most lenders have restrictive lending policies for.

Although he could afford the home loan, he couldn’t find a lender that would accept the stratum title unit as security.


Bank of Melbourne, which is owned by Westpac, is not as strict when it comes to lending for stratum title units.

Most lenders will restrict lending to 80% of the property value but Bank of Melbourne was able to lend up to 85% of the property value for the stratum title purchase.

Although Lenders Mortgage Insurance (LMI) applied because he was borrowing over 80% LVR (Loan to Value Ratio), Stuart was able to qualify for a really competitive LMI premium.

That’s because Bank of Melbourne/Westpac’s LMI provider Arch Capital usually offers the cheapest LMI premium when it comes to 80-92% LVR home loans.

In the end, Stuart was able to move into his apartment unit with his family and rent out his old home as an investment property.

Compare Bank of Melbourne to other lenders

Are you considering Bank of Melbourne? One of our mortgage brokers can help you to compare your options!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.