The non-major bank has reduced the fixed rates for its three-year fixed home loan to a historic low for the bank.
ME Bank has announced a 40 basis point reduction to its three-year fixed home loan rates to 3.18 per cent p.a., which it said is a “historic low” for the bank.
The bank’s reduced three-year fixed rate is available to existing owner-occupier home loan customers with a member package.
The new rate of 3.18 per cent p.a. applies to:
- Three-year principal and interest (P&I) fixed rates with a loan-to-value (LVR) ratio less than or equal to 80 per cent (comparison rate 3.87 per cent)
- Three-year P&I fixed rates with LVR between 80 per cent and 90 per cent (comparison rate 4.19 per cent)
The announcement follows a previous reduction by ME Bank of 15 basis points across all existing variable home loan customers from 23 July.
These changes come in light of the Reserve Bank of Australia’s back-to-back cuts to the official cash rate.
The non-major also recently announced changes to its home loan serviceability assessment policy in response to the Australian Prudential Regulation Authority’s revised home lending guidance.
Me Bank decreased its serviceability floor rate to 5.25 per cent p.a. and increased its buffer rate to 2.50 per cent p.a. above the offered interest rate for all home loan applications as of 2 August.