ME Bank has reduced its home loan interest rates by up to 50 basis points, which could lower the cost of a typical mortgage by $42,000.
ME Bank has made changes to its:
- 1-year fixed rates
- 2-year fixed rates
- 3-year fixed rates
- 4-year fixed rates
- 5-year fixed rates
Most of the interest rate cuts apply to owner-occupiers, although there are also some cuts for investors (see table below).
The Member Package five-year fixed rate has fallen from 4.49 per cent to 3.99 per cent (comparison rate 4.37 per cent).
If that rate cut was applied to a 30-year, $400,000 mortgage, the total repayments over the life of the loan would fall from $728,771 to $686,648, resulting in a saving of $42,123.
| Product | Loan type | Old advertised rate | New advertised rate | New comparison rate | Change to advertised rate |
|---|---|---|---|---|---|
| Flexible Home Loan fixed 1 year (LVR < 80%) | Owner-occupied | 4.14% | 3.99% | 5.02% | -15 points |
| Flexible Home Loan fixed 2 years (LVR < 80%) | Owner-occupied | 3.99% | 3.89% | 4.90% | -10 points |
| Flexible Home Loan fixed 3 years (LVR < 80%) | Owner-occupied | 4.14% | 3.94% | 4.82% | -20 points |
| Flexible Home Loan fixed 4 years (LVR < 80%) | Owner-occupied | 4.44% | 4.14% | 4.80% | -30 points |
| Flexible Home Loan fixed 5 years (LVR < 80%) | Owner-occupied | 4.64% | 4.14% | 4.73% | -50 points |
| Flexible Investment Loan fixed 4 years (principal & interest) | Investment | 4.74% | 4.54% | 5.42% | -20 points |
| Member Package Flexible Home Loan fixed 1 year (principal & interest) (LVR < 80%) | Owner-occupied | 3.99% | 3.84% | 4.34% | -15 points |
| Member Package Flexible Home Loan fixed 2 years (principal & interest) (LVR < 80%) | Owner-occupied | 3.84% | 3.74% | 4.31% | -10 points |
| Member Package Flexible Home Loan fixed 3 years (principal & interest) (LVR < 80%) | Owner-occupied | 3.99% | 3.79% | 4.31% | -20 points |
| Member Package Flexible Home Loan fixed 4 years (principal & interest) (LVR < 80%) | Owner-occupied | 4.29% | 3.99% | 4.37% | -30 points |
| Member Package Flexible Home Loan fixed 5 years (principal & interest) (LVR < 80%) | Owner-occupied | 4.49% | 3.99% | 4.37% | -50 points |
| Member Package Flexible Investment Loan fixed 4 years (principal & interest) | Investment | 4.59% | 4.39% | 4.73% | -20 points |
ME Bank interest rates are lower than average
ME Bank’s home loan rate cuts mean that its fixed-rate mortgages now have significantly lower interest rates than the industry average.
Here’s how ME Bank compares to the average interest rate of all the different fixed-rate home loans listed on RateCity:
| Loan | Loan type | RateCity average | ME Bank | Difference |
|---|---|---|---|---|
| 1-year fixed | Owner-occupied | 4.18% | 3.84% | 34 points |
| 2-year fixed | Owner-occupied | 4.14% | 3.74% | 40 points |
| 3-year fixed | Owner-occupied | 4.22% | 3.79% | 43 points |
| 4-year fixed | Owner-occupied | 4.55% | 3.99% | 56 points |
| 4-year fixed | Investment | 4.81% | 4.39% | 42 points |
| 5-year fixed | Owner-occupied | 4.60% | 3.99% | 61 points |
ME Bank’s interest rate changes took effect on March 29.
