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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.01% p.a.
$2,434
Principal & Interest
Fixed
$0
$0
90%
Free Redraw Facility
6.35% p.a.
6.26% p.a.
$2,489
Principal & Interest
Fixed
$0
$350
80%
6.69% p.a.
7.77% p.a.
$2,578
Principal & Interest
Fixed
$395
$0
80%
6.69% p.a.
7.19% p.a.
$2,578
Principal & Interest
Fixed
$0
$160
80%
Important Information and Comparison Rate Warning

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 be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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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