Bank of Melbourne Home Loan Review (Updated 2026)

Who is Bank of Melbourne?

Bank of Melbourne is part of the Westpac Group, sharing its credit policy with St George, BankSA and RAMS. In practice, it’s a Melbourne-branded St George. The loan products, LMI waivers, self-employed rules and automated credit assessment are all built on the same group framework. What sets it apart isn’t the underlying policy, it’s the wrapper: a bank built specifically around Victoria, with branches across metro Melbourne and regional Victoria, local home loan specialists, and community programs (the Bank of Melbourne Foundation funds local grants) that a national digital lender can’t replicate.

The top things Bank of Melbourne is good at

• Generous professional LMI waivers. Medico Group A can borrow up to 95% with no LMI and no income threshold; legal, accounting and a wide list of allied medical professions get up to 90% (see below).
• Up to 10 offset accounts on a variable loan through its Advantage Package, each a full 100% offset, useful for splitting savings across multiple goals.
• A strong Victorian branch network across metro Melbourne and regional areas, with local home loan specialists for borrowers who want face-to-face service.
• Family Pledge (family guarantee). A parent or close family member can use their property’s equity as security, helping first-home buyers with strong income but limited savings avoid LMI or a large deposit.
• 5% Deposit Scheme participation, including the single-parent stream up to 98% LVR.
• Westpac Group digital tools. Mobile banking, redraw and offset management, layered on top of the local branch experience.

Where Bank of Melbourne falls short

• Its identity is Victorian. Branch support and locally based specialists are concentrated in Victoria. Interstate borrowers still get the same products, but lose the local-branch experience that’s a big part of the appeal.
• Full-doc only for the self-employed. No low-doc or alt-doc option, so business owners who can’t fully evidence their income need a specialist lender instead.
• Engineers and IT professionals miss out on the professional LMI waiver, despite being eligible with some other lenders.
• Relies on Westpac’s back-end infrastructure. As a Group subsidiary, system issues or delays at Westpac can flow through to Bank of Melbourne customers.
• Group-wide waiver exposure. LMI-waiver capacity is aggregated across Westpac, St George, BankSA and RAMS, so existing group lending can eat into what’s left for a new application.
• No SMSF or commercial lending through the consumer channel.

The real edge: professional LMI waivers and multi-offset

This is where Bank of Melbourne stands out. Medico Group A (dentists, GPs, hospital-employed doctors and medical specialists) can borrow up to 95% with no LMI, with no income threshold and on loans up to $5 million. Medico Group B, audiologists, chiropractors, midwives, optometrists, osteopaths, pharmacists, physiotherapists, podiatrists, psychologists, radiographers, registered nurses, sonographers, speech pathologists, vets and occupational therapists, can go to 90%, provided combined income clears $90,000. Barristers, judges, lawyers and solicitors get 90% with a current practising certificate and $120,000-plus income, and accountants, actuaries, CFOs and finance managers holding a CA, CPA, CFA, FIAA or IPA qualification get the same 90% on the same income test. This is a notably wide list. Nurses, midwives, pharmacists, psychologists and vets are all included, which some rival lenders leave out. It’s exactly the kind of saving our LMI waivers guide is built around.

Layer on up to 10 offset accounts against a single variable loan through the Advantage Package, each running a full 100% offset, and Bank of Melbourne becomes a practical choice for a household that wants to split savings across several goals while still cutting interest. The catch: none of this applies to a fixed rate, and because LMI-waiver exposure is pooled across the whole Westpac Group, existing lending with Westpac, St George, BankSA or RAMS can reduce how much waiver room is left for you.

Self-employed and investment policy

Bank of Melbourne is a full-doc lender. There’s no low-doc or alt-doc product. Self-employed income is assessed through one of three methods: Fast Track, a one-year figure, or a two-year average. Eligible medical professionals get a concession that allows a single year of returns, with the cut-off extended to 31 May, which can help a recently established practice. See our self-employed home loans guide for how the three methods compare across lenders.

On investment lending, Bank of Melbourne will go up to 95% LVR with LMI (principal-and-interest or interest-only), while a refinance is capped at 90% on the base policy with a 95% ceiling in some cases. There’s no SMSF lending and no commercial lending through the consumer channel, and both sit outside its scope entirely.

What are the different Bank of Melbourne home loan products?

Bank of Melbourne’s range covers the essentials for owner-occupiers, investors and first-home buyers, plus two specialist products worth knowing about:

Bank of Melbourne home loan rates

Bank of Melbourne prices off the same underlying Westpac Group risk settings as St George, and your actual rate depends heavily on your loan-to-value ratio, the product you choose, and whether you’re bundled into the Advantage Package. Because advertised rates move constantly, and brokers don’t work from a live rate sheet, so we don’t publish specific figures here. They date quickly. Sharper pricing is typically reserved for lower-LVR borrowers and package customers.

Rather than chase a rate that changes week to week, the better move is a like-for-like comparison for your exact situation. Book a free assessment or call 1300 088 065 and we’ll pull live Bank of Melbourne pricing alongside the 30+ lenders on our panel.

What documents does Bank of Melbourne need for a home loan?

Applying with Bank of Melbourne requires the standard verification documents:

• Proof of identity. A primary ID such as a passport or Australian driver’s licence, plus secondary ID like a Medicare card or utility bill.
• Income evidence. For salaried employees, two recent payslips, your latest PAYG summary and tax assessment notice. For self-employed applicants, two years of tax returns and financial statements (or one year under the medico concession).
• Savings evidence. Three months of bank statements, plus a gift letter and deposit evidence if part of your deposit is a gift or sale proceeds.
• Liabilities. Statements for existing loans, credit cards, and details of any large recurring expenses such as school fees.
• Property documentation. The signed contract of sale and deposit receipt for a purchase, or council-approved plans and a signed building contract for construction.
• Family Pledge or trust/company documents where relevant. A guarantor’s property valuation and signed pledge agreement, or trust deed and trustee ID for a trust application.

The more complete your file, the faster Bank of Melbourne can assess it.

How much can I borrow from Bank of Melbourne?

Borrowing capacity depends on your income, expenses, existing debts, credit history and deposit size. There’s no single number that applies to everyone:

• Up to 95% LVR is possible with LMI (or without it, for eligible professionals), meaning as little as a 5% deposit in the right scenario, or 2% under the single-parent stream of the 5% Deposit Scheme.
• Serviceability is assessed with a buffer. Repayments are stress- tested at a higher rate to confirm you can cope if rates rise, and real living expenses and liabilities are factored in.
• Dependants and living costs matter. A single applicant with no dependants and moderate expenses typically has stronger serviceability than a household with dependants and higher costs on the same income.

Some illustrative scenarios (estimates only, not a quote or approval):

Note: these are estimates only and vary with credit score, lender policy and how income is assessed. For a tailored figure, use a borrowing power calculator or speak to a broker.

How long do Bank of Melbourne home loans take to approve?

Approval timing depends on the type of approval and how complete your application is:

1. 1Conditional (pre-)approvalWith all your details lodged, typically within one to two business days. Conditional approval is generally valid for 90 days and can be renewed.
2. 2Unconditional (full) approvalFollows the property valuation and final checks. Timing varies with valuation turnaround and any outstanding documentation.
3. 3Documents & settlementOnce approved, signing loan documents and settling typically adds one to two weeks.

The biggest variable is you. Having your paperwork ready up front, and lodging through a broker who packages the file correctly the first time, is the single best way to keep it moving.

What else does Bank of Melbourne offer?

• Everyday and savings accounts. The Complete Freedom transaction account, plus savings products like the Maxi Saver and Incentive Saver for building a deposit or emergency fund.
• Term deposits from one month to five years for parked savings.
• Credit cards and personal loans. Unsecured personal loans from $2,000–$50,000 and secured (car) loans from $3,000–$100,000, over one to seven years.
• Business banking. Financial tools and lending for businesses of all sizes.
• Westpac Group digital banking. Mobile app, cardless cash, and Apple Pay / Google Pay integration.

What are Bank of Melbourne customers saying?

Feedback on Bank of Melbourne is generally positive, particularly around personalised, friendly branch service and a mobile app customers find easy to use. Long-term customers also speak well of the bank’s flexibility during financial hardship. The more common criticisms are around phone-banking wait times and occasional branch service delays, which echoes what we hear about most bank-owned brands. As with any major-group lender, individual experience varies a lot depending on which branch or banker you land with. That’s one reason many borrowers prefer to lodge through a broker who manages the file end to end.

Who Bank of Melbourne suits, and who it doesn’t

How does Bank of Melbourne compare to other banks?

Bank of Melbourne is best judged on its specifics rather than its headline rate. Each lender type leads on a different niche. Because it runs on St George’s credit policy, the two are close enough that the choice often comes down to branding and banking relationship rather than terms. Here’s how it stacks up on the things that actually decide the outcome:

Because the underlying policy is shared, it’s worth reading our St George review for the same terms from a different brand. Its parent, Westpac, runs its own separate policy and is worth comparing if you want the Group’s flagship brand rather than a regional one. And because the professional waivers are the main reason to choose Bank of Melbourne at all, it’s worth reading our dedicated LMI waivers guide before assuming this is your best option. Another lender’s waiver terms may suit your profession or deposit better.

Broker tips for applying with Bank of Melbourne

• Check which medico group you fall into. Group A gets 95% with no income test; Group B is capped at 90% with a $90,000 combined-income minimum. Knowing which applies changes your deposit planning.
• Ask about group-wide exposure early if you or your household already borrow with Westpac, St George, BankSA or RAMS. It can affect how much waiver capacity is actually available.
• Use the Advantage Package if you want multiple offsets. The 10-account structure is useful for splitting savings, but it only applies on variable.
• Consider a Family Pledge if you have strong income but a limited deposit and a family member willing to help. It can remove the need for LMI entirely.
• If you’re self-employed, confirm up front which of the three income-assessment methods fits your financials before you apply.

Is a Bank of Melbourne home loan right for you?

Bank of Melbourne is a strong option specifically for eligible medical, legal and accounting professionals, for anyone who wants several offset accounts on one loan, and for Victorian buyers who value local branch service, but its policy mirrors St George’s closely, so the right choice often comes down to your profession, deposit, location and existing Westpac Group exposure. We’ll compare Bank of Melbourne against 30+ lenders and tell you honestly whether it’s your best fit. Book a free assessment or call 1300 088 065 to get started.