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Bank unveils record-low fixed rates

by Staff reporter5 minute read

ME Bank has cut its fixed rates by 31 basis points after confirming last week that it will be passing on the full 25-basis-point cut.

The regional lender’s three-year fixed rate has been slashed by 31 basis points to 4.28 per cent.

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Its one-year fixed rate has been cut by 20 basis points to 4.69 per cent, while its five-year fixed rate has been reduced by 10 basis points to 4.59 per cent.

ME Bank chief executive Jamie McPhee said the cost at which the bank borrows in the fixed-rate market has been falling.

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“In turn, we choose to immediately pass these savings on to customers,” he said.

Since December 2013, ME Bank has reduced its five-year fixed home loan rate by 120 basis points, its three-year fixed loan by 56 points and its one-year fixed loans by 20 points.

“It has taken a while for other banks in the marketplace to follow suit, and I’m proud to say ME Bank continues to lead the charge – a move that has clearly resonated with customers,” Mr McPhee said.

AFG data has revealed that the aggregators brokers used ME Bank for 9.0 per cent of their fixed loans in December 2014, up from 4.3 per cent in January 2014.

“ME Bank is focused on a strong growth trajectory, and home loans will continue to be the most important source of asset growth over the next three years,” the aggregator said.

Meanwhile, Bank of Melbourne has also cut its fixed home loan rates, with its five-year fixed rate cut by 50 basis points to 4.49 per cent.

The bank’s four-year and three-year fixed rates have been cut by 30 basis points to 4.69 per cent and 4.49 per cent respectively.

Bank of Melbourne’s two-year fixed rate has been reduced by 10 basis points to 4.59 per cent, while its one-year fixed rate has also been cut by 10 points to 4.69 per cent.

[Related: Rate-cutting frenzy continues]

Bank unveils record-low fixed rates
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