Industry super fund-owned bank ME has made further reductions to three of its home loan rates, while a mortgage funder has also joined the pricing war.
The bank’s three-year fixed rate for owner-occupiers has been cut by 7 basis points to 3.97 per cent (with a 4.41 per cent comparison rate).
Furthermore, ME’s Member Package variable rate has been reduced by 8 basis points for owner-occupiers to 4.01 per cent (with a 4.42 per cent comparison rate), and by 5 basis points for investors to 4.24 per cent (with a 4.62 per cent comparison rate). Customers with a maximum LVR of 80 per cent are eligible for these new rates.
Lino Pelaccia, general manager of broker sales at ME, said the bank is eager to remain competitive in a market that has seen some compelling offers recently.
“ME is excited to offer these new rates, partly facilitated through recent cheaper fixed-rate funding,” he said.
These latest rate changes by ME come after the bank lowered the standard variable rate for its home loan products by 5 basis points, as well as its three-year fixed rates for owner-occupiers and investors by 25 points and 20 points respectively.
[Related: Two banks slash rates below 4%]