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Bank of Melbourne - Refund of LMI up to 85% LVR and 1% off Standard Variable Home Loan Rate

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Bank of Melbourne - Refund of LMI up to 85% LVR and 1% off Standard Variable Home Loan Rate
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Associatedneo21 on 16/02/2012 - 10:23 wesharehomeloans.com.au (221 clicks)

Thought everyone should know of the special deals (which can be combined) from Bank Of Melbourne. I just got them e-mailed to me by their mobile banker.

Special Deal 1

Refund of Lenders Mortgage Insurance up to 85% LVR

Deal Expires 31/03/12

Bank of Melbourne will refund a borrower their LMI insurance 30 days after settlement for any loan borrowing up to 85%.
The following criteria applies:

Must have an eligible Bank of Melbourne transaction account
Must be 80-85% LVR (including Capitalised LMI if applicable)
New and increase loans (Note: only the LMI on the increase component will be refunded)
Must meet LMI criteria
Must be able to service and meet normal lending requirements based on the full loan amount including LMI – no exceptions
Full contribution, fees & charges (including LMI) must be available to meet settlement
Loans originated between Wednesday 15 February 2012 and Friday 31 March 2012
Loan must be fully approved by 20 April 2012 and settled by 31 July 2012

Special Deal 2

1% off the Standard Variable Home Loan rate for loans over $500k

Expires 31/03/12

Bank Of Melbourne will give customers who borrow over $500,000 up to 1% off the standard variable home loan rate, for the life of the loan. To secure this there is a $395 package fee (includes a number of other benefits) and a $100 settlement fee. This discount would equal a interest rate of 6.4%

If you loan is between $250,000 and $499,999 the Bank of Melbourne is giving 0.9btps off the standard variable rate. Thats a home loan variable rate of 6.5%

Financial Bank of Melbourne Home Loan Interest LMI

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closed Comments

  • bemybubble on 16/02/2012 - 10:43

    so let me get this straight, you need 80 - 85% equity in your property to be eligable?

    Edit: Negging because even option 2 isn't appealing. Ubank has it's standard variable loan rate of 6.14% with a max LVR of 80% no app fees etc

    https://www.ubank.com.au/ub/web/home

    • kierand on 16/02/2012 - 10:54
      +2

      Other way around… you need 15-20% equity to be eligible - LVR stands for Loan to Value Ratio.

      • bemybubble on 16/02/2012 - 10:59

        ahhh yes, was thinking it but didnt articulate it lol. Even so, 20% equity in either cash and/or security is pretty stock standard :/

    • hatts on 16/02/2012 - 10:55
      +2

      No, he means an 85% LVR (Loan to Value ratio) ie, you are borrowing over the 80% mark where LMI fees usually apply but but below 85% (where the cost roughly doubles).

      ING Direct have been doing something similar for years, if you can show enough stability (saved deposit and 2yr+ employment) they will charge a much smaller risk fee instead of LMI for borrowings at the same level with a few other T&C's

  • hatts on 16/02/2012 - 11:21

    decided not to post this comment

  • hsct on 16/02/2012 - 13:43

    Can Deal 1 be mixed with Deal 2?

    Deal 1 is pretty sweet cos that saves you thousands in LMI. Not too many banks offering this.

    • Associatedneo21 @ wesharehomeloans.com.au on 16/02/2012 - 14:54

      hsct, you can combine them both.
      Interest rates available $250k to 499k 6.5% (with .9% discount)
      $500k plus 6.4% (with 1% discount)
      15% to 20% deposit LMI Paid for

      Referred to Bank of Melbourne by We Share home loans you get $150 extra cash per $100k borrowed.

  • Roberto on 16/02/2012 - 16:26

    I have existing St George/Bank of Melbourne home loans and was on 0.7% discount off the standard variable rate, and after speaking to their loans team today they offered to increase this to 1% off (same as the offer for new loans mentioned in this posting). So existing customers be sure to see what they can do for you too.

    • southpaw on 16/02/2012 - 23:47

      Echo that. All of the major banks are offering 0.85 - 1% off for the life of your loan at the moment (for loans over 250k). All it takes is to go to your branch and ask. If they refuse threaten to walk and they will give it to you. Doing this will likely save you more money than 100 OzBargain posts (no offence intended I love this web site!)

  • jv on 16/02/2012 - 21:09

    Increasing interest rates to customers by 10 basis points means they will not get my business !!!

    http://www.heraldsun.com.au/business/bank-of-melbourne-lifts…

  • app on 16/02/2012 - 22:51

    There are cheaper interest rates available than offered in this deal.
    The up front (one time only) saving is pretty good, but not worth taking up if it's going to cost me money every year after that.
    Do Bank of Melbourne charge an exit fee?

    • jv on 16/02/2012 - 23:01

      Do Bank of Melbourne charge an exit fee?

      I'm pretty sure the govt made it illegal to charge exit fees sometime last year…
      (not sure if this is only for new loans though or whether it applied to existing ones too)

      • Geewhizz on 17/02/2012 - 06:58
        +1

        The abolition of fees applies only to new loans from July of last year. For loans that were already running prior to the ban kicking in, exit fees are still applicable. I've heard one or two reports where the bank waived it as a goodwill gesture, but can't see too many of them doing it.

    • Associatedneo21 @ wesharehomeloans.com.au on 17/02/2012 - 11:21

      It's worth me noting that the 1% discount is for the LIFE of the loan, not just a upfront saving

  • Geewhizz on 17/02/2012 - 06:57

    oops

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