The ME Bank Basic Loan offers differing rates depending on whether the borrower is an investor or intending to live in the property, as well as the size of their deposit.
Borrowers with a deposit of 5 per cent or more are welcome, but smaller deposits may end up paying the bank’s top variable rate. They may also have to pay for lenders mortgage insurance.
Repayments can be made on a weekly, fortnightly or monthly basis and additional repayments are allowed. There is also the option to redraw funds and top up the home loan.
Borrowers can make interest-only payments for up to 10 years if they wish.
Who is the ME Bank Basic Loan good for?
The ME Basic Loan would suit borrowers who want a no-frills loan, with a few additional benefits like a redraw facility and top up function.
Borrowers with a larger deposit may be lured by the discounted rate for deposits of 20 per cent or more, while investors might like the option to pay interest-only for the first 10 years.
Review - What RateCity says
The ME Basic Loan achieves what it sets out to do in giving borrowers a simple loan with a few add-ons. Its interest rate is moderate, but when the rate discount is applied for borrowers with a deposit of 20 per cent or more it becomes very low. This is worth considering, while bearing in mind variable rates can change.
All in all, ME has come up with a good package, with a bunch of useful benefits, such as rate discounts, a redraw facility and the option to top up and make interest-only payments.
ME Bank Basic Loan Options
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