Three banks announce pricing and policy changes

“We were the only one of the majors who was at 80 per cent and this change is bringing us in line with market,” the bank said.

Meanwhile, MyState Limited has announced that its banking businesses, MyState Bank and The Rock, have reduced their three-year fixed rate by 44 basis points to 3.74 per cent, effective tomorrow.

The new rate applies to new principal-and-interest loans for owner-occupiers that exceed $100,000 and have an LVR of less than 80 per cent.

Furthermore, MyState customers who refinance loans of more than $400,000 from another lender with a maximum LVR of 80 per cent will be eligible for a $1,500 cashback reward, available for a limited time only.

Sandi Sims, MyState’s head of broker, said the group’s new rates are further proof of its commitment to providing brokers with great products and service to help them win business.

“Operational enhancements we have made over the past year have significantly improved our ability to meet the needs of brokers and their customers,” she said.

“We are looking to write more business and further refine our processes to make our partnership with brokers even stronger.”

ME has also announced reductions to its three-year fixed rates, with the industry super fund-owned bank’s investor rate cut by 10 basis points to 3.99 per cent (with a 5.14 per cent comparison rate), and its owner-occupier rate cut by 8 basis points to 3.89 per cent (with a 4.75 per cent comparison rate).

Lino Pelaccia, general manager of broker at ME, said the bank was able to facilitate the new rates through recent cheaper fixed-rate funding.

“The cost of fixed-rate funding has fallen significantly since the RBA cut rates in early May – savings that ME has decided to pass on to customers in the form of cheaper fixed-rate home loans,” he said.

[Related: BMM slashes rates by 100 basis points]