ME Bank, Freedom Lend cut home loan rates

author-avatar By on January 15, 2021
ME Bank, Freedom Lend cut home loan rates

Two lenders made rate changes that came into effect on Tuesday, with some home loans cut by up to 57 basis points.

The biggest cuts were to Freedom Lend's four and five-year fixed interest-only (IO) home loans, cut by 57 basis points. 

Both of them have an advertised rate of 2.77% p.a, and a comparison rate of 3.12% p.a.*

Borrowers must have a minimum 20% deposit to qualify for this loan (an 80% LVR). 

Buying a home or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner occupiers.

Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 2 Years

FixedMore details

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

FixedMore details

Fixed Rate Home Loan (Principal and Interest) 3 Years


Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of September 26, 2021. View disclaimer.

Freedom Lend also cut a wide variety of other loans by between 2 and 52 basis points.

A couple of noteworthy variable loans to get a haircut were:

  • Investment Freedom Variable P&I 70%: 27 basis point cut to 2.27% p.a. (2.27% p.a. comparison rate*)
  • Freedom Variable IO 70%: 32 basis point cut to 2.27% p.a. (2.33% p.a. comparison rate*)

Meanwhile, ME Bank cut a variety of packaged loans by between 15 and 20 basis points, including:

  • Member Package Flexible OO P&I 80%: 20 basis point cut to 2.49% p.a. (2.95% p.a. comparison rate*)
  • Member Package Flexible Inv P&I 80%: 15 basis point cut to 2.98% p.a. (3.43% p.a. comparison rate*)

The important caveat with these home loans is that it's for a minimum borrowing amount of $700,000, which, implying you have a 20% deposit equates to a property price of $875,000. 

For borrowers borrowing more modest amounts, the changes look similar on the surface, but keep an eye on that comparison rate:

  • Member Package Flexible OO P&I 80%: 15 basis point cut to 2.59% p.a. (3.05% p.a. comparison rate*)
  • Member Package Flexible Inv P&I 80%: 15 basis point cut to 2.98% p.a. (3.43% p.a. comparison rate*)

These home loans with the applicable comparison rate are for borrowed amounts between $400,000 and $700,000. 

These are variable rates, but also keep in mind that ME Bank calls some fixed home loans 'Flexible' loans too.

The 'Member Package' is slightly different from the traditional definition of a packaged home loan, which bundles credit cards and other products.

Instead, ME's 'package' is a flexible add-on that charges $395 per year, and in return borrowers receive no valuation costs, a lower variable interest rate, no fee for fixing, no fee for splitting, and no fee for topping up.

Ordinarily these features would cost $200 to $250 a pop. 

Photo by Patrick Perkins on Unsplash


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

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.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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