ME Bank have slashed interest rates across a range of its fixed-rate loans, some by up to 50 basis points, in an otherwise quiet week for rate changes.
The ME home loans to get the biggest haircut were interest only (IO) investor home loans, including:
- Inv Flexible Fixed 4 Years IO: 50 basis point cut to 3.34% p.a. (4.50% p.a. comparison rate*)
- Inv Flexible Fixed 5 Years IO: 50 basis point cut to 3.34% p.a. (4.38% p.a. comparison rate*)
- Member Package Inv Flexible Fixed 4 Years IO: 50 basis point cut to 3.19% p.a. (3.69% p.a. comparison rate*)
- Member Package Inv Flexible Fixed 5 Years IO: 50 basis point cut to 3.19% p.a. (3.68% p.a. comparison rate*)
These rates apply to borrowers with a maximum loan-to-value ratio (LVR) of 80%, meaning borrowers either need at least a 20% deposit, or the equivalent of 20% equity in the home.
All of ME Bank's cuts in the past week were to investor loans, with other cuts by between 29 and 40 basis points.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Smart Booster Home Loan
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.47%
Product Features
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Other notable ME home loans to get a cut in the past week include:
- Inv Flexible Fixed 1 Year P&I: 40 basis point cut to 2.64% p.a. (4.86% p.a. comparison rate*)
- Inv Flexible Fixed 3 Year P&I: 40 basis point cut to 2.64% p.a. (4.45% p.a. comparison rate*)
- Member Package Inv Flexible 1 Year Fixed P&I: 40 basis point cut to 2.49% p.a. (3.65% p.a. comparison rate*)
- Member Package Inv Flexible 3 Year Fixed P&I: 40 basis point cut to 2.49% p.a. (3.52% p.a. comparison rate*)
Elsewhere, Credit Union SA also made a couple of changes to its home loans, including:
- Discounted Variable Rate 'Special Offer': 25 basis point cut to 2.34% p.a. (2.78% p.a. comparison rate*)
- Variable Package 'Special Offer': 25 basis point cut to 2.34% p.a. (2.36% p.a. comparison rate*)
The special offer requires minimum borrowings of $150,000, and the 'special offer' could expire at any time.
Photo by Shelia Regita Pasaribu on Unsplash
