Industry super fund-owned bank ME has just announced a cashback offer for new home loan customers.
The bank today announced it will offer $1,250 cashback to customers who apply for new owner-occupier home loans greater than $400,000.
The offer will apply to all owner occupiers who apply from 8 September to 2 October 2015 and settle before the 31 December 2015.
ME general manager of broker sales Lino Pelaccia said the bank has timed the offer to boost applications in the lead up to the spring buying season.
The offer is not available for existing applications, internal refinances or top ups of existing ME home loans, and cannot be used in conjunction with any other home loan offer.
The announcement follows the bank’s decision to reprice its mortgage rates.
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.”
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.
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