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.
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
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