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ME Bank cuts mortgage rates

Nick Bendel avatar
Nick Bendel
- 3 min read
ME Bank cuts mortgage rates

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.

ProductLoan typeOld advertised rateNew advertised rateNew comparison rateChange to advertised rate
Flexible Home Loan fixed 1 year (LVR < 80%)Owner-occupied4.14%3.99%5.02%-15 points
Flexible Home Loan fixed 2 years (LVR < 80%)Owner-occupied3.99%3.89%4.90%-10 points
Flexible Home Loan fixed 3 years (LVR < 80%)Owner-occupied4.14%3.94%4.82%-20 points
Flexible Home Loan fixed 4 years (LVR < 80%)Owner-occupied4.44%4.14%4.80%-30 points
Flexible Home Loan fixed 5 years (LVR < 80%)Owner-occupied4.64%4.14%4.73%-50 points
Flexible Investment Loan fixed 4 years (principal & interest)Investment4.74%4.54%5.42%-20 points
Member Package Flexible Home Loan fixed 1 year (principal & interest) (LVR < 80%)Owner-occupied3.99%3.84%4.34%-15 points
Member Package Flexible Home Loan fixed 2 years (principal & interest) (LVR < 80%)Owner-occupied3.84%3.74%4.31%-10 points
Member Package Flexible Home Loan fixed 3 years (principal & interest) (LVR < 80%)Owner-occupied3.99%3.79%4.31%-20 points
Member Package Flexible Home Loan fixed 4 years (principal & interest) (LVR < 80%)Owner-occupied4.29%3.99%4.37%-30 points
Member Package Flexible Home Loan fixed 5 years (principal & interest) (LVR < 80%)Owner-occupied4.49%3.99%4.37%-50 points
Member Package Flexible Investment Loan fixed 4 years (principal & interest)Investment4.59%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:

LoanLoan typeRateCity averageME BankDifference
1-year fixedOwner-occupied4.18%3.84%34 points
2-year fixedOwner-occupied4.14%3.74%40 points
3-year fixedOwner-occupied4.22%3.79%43 points
4-year fixedOwner-occupied4.55%3.99%56 points
4-year fixedInvestment4.81%4.39%42 points
5-year fixedOwner-occupied4.60%3.99%61 points

ME Bank’s interest rate changes took effect on March 29.

Disclaimer

This article is over two years old, last updated on March 31, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Product database updated 19 Mar, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.