ME Bank cuts mortgage rates



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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.

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