ME slashes rates by up to 31bps

ME has announced rate reductions across tis fixed rate home loans for both owner-occupiers and investors, effective from Tuesday, 18 June.

Most notably, ME has reduced its two-year fixed home loan rate by 31bps to 3.43 per cent (4.26 per cent comparison rate) – the lowest rate ever offered by the bank.

The two-year fixed rate is available to owner-occupiers paying principal and interest with a Member Package.

Other changes for owner-occupiers paying principal and interest with a Member Package include:

• one-year fixed rates have been cut by 21 bps to 3.63 per cent (4.32 per cent comparison rate)
• four-year fixed rates have been cut by 21 bps to 3.78 per cent (4.30 per cent comparison rate)
• five-year fixed rates have been cut by 21 bps to 3.78 per cent (4.29 per cent comparison rate)

For investors paying principal and interest with a Member Package:

• one-year fixed rates have been cut by 30 bps to 4.39 per cent (4.61 per cent comparison rate)
• two-year fixed rates have been cut by 10 bps to 4.29 per cent (4.61 per cent comparison rate)
• three-year fixed rates have been cut by 21 bps to 3.88 per cent (4.51 per cent comparison rate)

Earlier this month, ME also announced that it would drop its variable rates by 25bps for all of its existing customers, effective from 27 June.

The rate cuts have come off the back of the Reserve Bank of Australia's (RBA) monetary policy adjustment, with several lenders, including the big four banks, passing on the reduction to their mortgage customers. 

The RBA’s decision has prompted some lenders to drop rates to as low as 2.99 per cent – as offered by Greater Bank and UBank on their one-year owner-occupied fixed rates.

Non-bank lender Reduce Home loans has also announced the introduction of an owner-occupied variable home loan offering with an interest rate of 3.09 per cent, targeted at borrowers with 40 per cent deposit.

Mortgage House, which recently funded the launch of an owner-occupied variable home loan with an interest rate of 3.29 per cent through uno Home Loans, has also dropped its rate to 3.15 per cent in response to the RBA’s announcement.

[Related: Gateway Bank cuts mortgage rates]

ME slashes rates by up to 31bps

Reporter

Last Updated: 18 June 2019 Published: 19 June 2019

Written by Reporter

Last Updated: 18 June 2019

Published: 19 June 2019