One of Australia’s lenders has slashed the interest on one of its fixed rate products, taking the home loan to 4.99 per cent.
Yesterday, ME Bank trimmed its one-year fixed rate for its Super Member Home Loan standard home loan with a member package.
In addition, the lender cut several basis points from its three-year fixed rate, taking the product to 5.19 per cent.
ME Bank chief executive Jamie McPhee said the new fixed rates are currently sitting at lows rarely seen in the marketplace.
“This presents a unique opportunity for customers seeking to lock in lower repayments,” he said.
“The average standard variable rate for the big four banks is currently 6.42 per cent per annum, which is 1.43 per cent higher than our new one-year fixed rate.
“A borrower could save themselves more than $3,200 over 12 months by borrowing at 4.99 per cent per annum. instead of 6.42 per cent per annum on a 25-year, $300,000 loan.”
Mr McPhee said the Bank’s one-year fixed rate is currently the lowest available in the market and this is the second time in four months that the bank has cut fixed rates to record lows.
“Fixed rates are at lows rarely seen in the home loan market and remain popular with borrowers, with between 20 per cent and 30 per cent of ME Bank customers currently fixing home loans, well above the market average,” he said.
“Our decision to cut fixed rates again gives customers an opportunity to lock in very low rates, providing added security during times of continuing economic uncertainty.
“Fixed rates provide assurance that repayments won’t fluctuate over the period of the term and give borrowers the confidence to plan ahead, knowing exactly how their mortgage repayments will be made.”
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