Bank of Melbourne car loans – Get a fixed or variable rate
Bank of Melbourne is based in Victoria, and their personal loans can be fashioned to quickly get you on the road with your newly purchased set of wheels. Learn more about Bank of Melbourne car loans in our thorough guide below.
A quick look at what you’ll get
With a Bank of Melbourne secured car loan, the basics look like this:
- Loan amounts – Between $3,000 and $80,000
- Loan terms – From 1 to 7 years
- Interest rate – From 7.49% to 12.74%
- Comparison rate – From 8.60% to 13.81%
Key features of Bank of Melbourne secured car loans
First off, since the loan is secured, you’ll need to provide collateral. This can be your new purchase or an existing vehicle.
To qualify, the car must be registered in your name and not be older than 12 years when the term ends. Also, it should be four-wheel, with no previous extensive damage or write-offs. Lastly, the vehicle must have comprehensive insurance cover for one year.
Other features include a choice of weekly, fortnightly, or monthly repayments and the ability to manage your debt online via a mobile app. When it comes to interest rate types, you can choose between:
- Fixed rate. Your repayments come with no surprises from start to finish since the interest rate stays the same. Terms are between 1 and 5 years, and the interest rate is set at 7.49% while the comparison rate sits at 8.60%.
- Variable rate. Terms are from 1 to 7 years. The interest rate – which can go up or down – starts at 12.74% with a slightly higher comparison rate of 13.81%. The variable rate loan also gives you the option to put down extra repayments and pocket them again when needed (redraw facility). However, there’s a fee attached, and you have to seek approval first before redrawing.
Please note that you can still use the funds from a secured personal loan for other purposes like holidays or weddings. However, if you’re keen on purchasing a new ride, use our Bank of Melbourne car loan calculator to get an estimate of what you’ll pay per month.
What are the fees?
- Establishment fee – $195
- Monthly admin fee – $12
- Redraw fee – $10
- Early repayment fee when you exit in the first 12 months -$150
- Early repayment fee when you exit early after 12 months -$100
- Break costs – applies to early exits, additional repayments and defaults for fixed rate loans
Keep in mind the above fees are subject to change. Before making a final decision, read Bank of Melbourne’s terms and conditions. Make sure to check up on fees, charges, and interest rates that apply.
Can you use a Bank of Melbourne unsecured personal loan to buy a car?
Yes, this option allows you to still borrow money without an asset as security. Amounts are between $2,000 and $50,000 which you can splurge on anything, including a car.
Generally, interest rates range from 11.49% to 12.99%, and you have between 1 and 7 years to repay the debt. You can also choose between fixed rate and variable rate options. As with secured loans, choosing a variable rate allows you to make extra repayments which you can then redraw.
How to apply for Bank of Melbourne car loans
Apply online by clicking the “Go to Site” button in the comparison table above. General requirements state that you must be a permanent Australian resident and 18 years or older. Here’s what you’ll also need:
- Driver’s licence
- Employment details
- Personal information or contact details
- Details of your income, assets, expenses, and other financial commitments
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