ME slashes rates by 40 basis points

This is the lowest rate ever offered by the industry super fund-owned bank and one of the cheapest two-year fixed rates in market.

ME’s general manager of broker sales, Lino Pelaccia, said ME was able to facilitate the cut as a result of cheaper fixed rate funding.

“We’re choosing to pass these savings on to customers, true to our philosophy of helping everyday Australians get ahead,” he said.

“Savvy borrowers also have the option to split both our two-year fixed rate with our competitive Flexible Home Loan with Member Package variable rate for new loans of 4.19 per cent.”

Earlier this month ME announced that for a limited time it will offer a 4.19 per cent variable rate for its Flexible Home Loans (with members package).

Mr Pelaccia said the offer will help ME compete in the owner-occupier lending space, which has heated up in recent months following changes to investor pricing.

“Our Flexible Home Loan (with members package) is now positioned as one of the best in market, and is timed perfectly as buyers get stuck into the spring buying season,” Mr Pelaccia said.

“Savvy borrowers also have the option to split both our variable and three-year fixed rate of 4.19 per cent per annum into one sweet rate combination.”

The offer is available for owner-occupiers who apply from 1 October and settle with 90 days of the promotion’s closure.

[Related: Fixed-rate demand hits four-year low]