ME Bank cuts fixed rate home loans to under 3%

Photo by Aaron Burden on Unsplash

ME Bank has today announced its lowest ever rate, cutting its two year fixed home loan rate to 2.88% p.a (3.96% p.a. comparison rate*).

The new rate is available to owner-occupier home loan customers with a Flexible Home Loan Member Package, paying principal and interest with a loan to value ratio (LVR) of less than or equal to 90%.

The bank has made a host of changes across fixed rate products, with cuts of up to 60 basis points.

This is the fifth major home loan rate cut ME has made this year following the three cash rate cuts by the Reserve Bank in June, July and October.

A $395 annual Member Package fee applies to all loans and all changes are effective as of 14 October 2019 – today.

The bank also recently announced that it would be cutting variable rates by 15 basis points, effective from 24 October 2019.

In June and July, ME cut variable rates by 25 and 20 basis points respectively.

The table below shows a collection of some of the lowest fixed interest rates on the market.

Check out the full list of changes below.

ME Bank fixed rate changes

For customers with a Flexible Home Loan with a Member Package, owner-occupied (OO), principal & interest (P&I), ≤90% LVR:

• Two year rate cut by 39 basis points from 3.27% p.a. to 2.88% p.a. (3.96% p.a. comparison rate*)
• Four year rate cut by 40 basis points from 3.58% p.a. to 3.18% p.a. 
  (3.94% p.a. comparison rate*)
• Five year rate cut by 50 basis points from 3.58% p.a. to 2.99% p.a. 
  (3.83% p.a. comparison rate*)

For customers with a Flexible Home Loan with a Member Package, investment, P&I, ≤90% LVR:

• Two year rate cut by 40 basis points from 3.58% p.a. to 3.18% p.a. 
  (4.16% p.a. comparison rate*)
• Three year rate cut by 20 basis points from 3.48% p.a. to 3.28% p.a. 
  (4.01% p.a. comparison rate*)
• Four year rate cut by 60 basis points from 3.88% p.a. to 3.28% p.a. 
  (4.09% p.a. comparison rate*)
• Five year rate cut by 60 basis points from 3.88% p.a. to 3.28% p.a. 
  (4.05% p.a. comparison rate*)

For customers with a Flexible Home Loan with a Member Package, interest-only, P&I, ≤80% LVR:

• Two year rate cut by 41 basis points from 3.79% p.a. to 3.38% p.a. 
  (4.06% p.a. comparison rate*)
• Four year rate cut by 30 basis points from 3.99% p.a. to 3.69% p.a. 
  (4.11% p.a. comparison rate*)
• Five year rate cut by 30 basis points from 3.99% p.a. to 3.69% p.a. 
  (4.11% p.a. comparison rate*)

ME savings account rate change

ME also decreased the maximum interest rate on its Online Savings Account product by 15 basis points last week, taking it to a new total rate of 2.20% p.a.

The base rate on this account was reduced by 30 basis points from 0.80% p.a. to 0.50% p.a, while the bonus rate was increased from 1.55% p.a. to 1.70% p.a.

To earn the bonus rate on top of the base rate, ME customers must:

• Have both ME’s Online Savings Account and Everyday Transaction Account linked
  Make at least four tap & g purchases per month
• Have no more than $250,000 deposited

---

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

• Petrol price growth rate at 31-year high, prompting many to pursue electric vehicles January 25, 2022
• Prenups: What are they & do you really need one? January 25, 2022
• Brisbane and Canberra lead nation in rental price surge January 25, 2022
• Inflation closes out the year on a high rising to 3.5% through 2021 January 25, 2022
• How to buy the 'perfect' property before Easter 2022 January 25, 2022