Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ME announces rate changes

percentage increase  x percentage increase  x
James Mitchell 4 minute read

Industry super fund-owned bank ME today announced changes to its variable and fixed home loan interest rates for investor and selected owner occupied loans.

Effective 15 September, ME’s Basic Variable home loan interest rate for new investor borrowers will rise by 40 basis points to 4.69 per cent and its Flexible home loan with member package interest rate for new investor borrowers will increase by 0.36 per cent to 4.89 per cent.

Rates across existing investor loans will also rise by 0.41 per cent.

Fixed rates for new owner occupied borrowers will fall between 0.09 per cent and 0.50 per cent across its 3 to 7 year terms, including its 3-year fixed rate falling 0.09 per cent to 4.19 per cent.


ME CEO Jamie McPhee said the changes have been precipitated by major shifts in the banking industry that have forced banks including ME to review their lending practices and pricing.

“APRA introduced new regulatory measures to reinforce sound residential lending practices last December, including actions to restrict investor lending growth to no more than 10 per cent per annum,” Mr McPhee said.

“The changes we have announced today will advantage owner occupied borrowers particularly those seeking to buy their first home,” he said.

“The decision to increase investment rates was a difficult one, but after careful consideration we believe that combined with rate cuts across selected owner occupied home loans it strikes the right balance across our portfolio.”

[Related: Bank raises investor home loan rates]


ME announces rate changes
percentage increase  x
TheAdviser logo

percentage increase  x
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.



more from the adviser
Sam White 3 Loan Market to move forward with MyCRM

The major brokerage has chosen MyCRM as its broker platform, but ...

ASIC TA ACL obligations issued for debt management firms

ASIC will require debt management firms to hold a credit licence...

handshake 2 NAB exec to head up mutual bank

A member-owned bank has announced that it has appointed a new CEO...