ME Bank Flexible Loan

ME Bank’s Flexible Loan is offered as both a variable rate loan and a fixed rate loan. You also have the option to split your loan between the two interest rates.

The variable rate home loan option comes with a ME Bank Everyday Transaction Account which can be used as your 100 per cent offset account. It is free to transact through this account.

You may also make additional repayments into your loan whenever you like, without penalty. You can redraw this money at any time. Redraws are free, as long as your redraw amount meets the minimum allowed amount.

This loan allows for flexible repayments so you can elect to make your repayments weekly, fortnightly or monthly. With your variable rate loan you also have the option to pay up to a years’ interest in advance – and take a repayment holiday later down the track if you require – although you should be aware that fees do apply for this.

Your ME Bank Flexible Loan can also be taken up as an interest only loan for up to ten years, and it can be used as construction loan. The loan is available to investors but be prepared to pay higher rates of interest, depending on the size of your deposit.

While the fixed rate version of ME Bank’s Flexible Loan offers much the same features as the variable rate loan – including the ability to set up your Everyday Transaction Account as your offset facility – there are some differences.

You can choose a fixed rate loan option for between one to seven years. The applicable interest rate will differ greatly depending on the time frame you choose for your fixed rate loan. In addition you have the ability to make up to $30,000 of additional repayments into your fixed rate loan, or the fixed rate portion of your split loan, without incurring break fees. This can make a big difference to the way you manage your finances.

While investors can also access ME Bank’s Flexible Loan at a fixed interest rate, they will pay a higher interest rate than owner occupiers. You cannot pay up to 12 months’ interest advance on the fixed rate versions of this loan, nor is the repayment holiday option available.

The other important thing to note about the fixed rate version of this loan is that there is the option to lock in a good fixed rate – for which you will pay a fee. Be aware however that this will only ‘lock’ your rate for a period of 90 days.

The ME Bank’s Flexible Loan is good for borrowers looking for a competitive interest rate with included options for paying their debt down as quickly and simply as possible.

The ability to make additional repayments can save you money and years off the life of your loan – likewise the flexibility to withdraw this ‘spare money’ can come in handy when life surprises you.