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ME Bank hikes variable home loan interest rates

ME Bank hikes variable home loan interest rates

ME Bank has today announced it will increase its variable home loan interest rates for both new and existing customers.

Bearing the brunt of the rate hike is ME Bank’s existing variable customers, they’re being slugged with an 18 basis point increase, which will kick in next Friday.

The variable interest rate for new customers joining ME Bank will also go up, but by 8 basis points.

ME Bank hiked rates for their existing customers in April 2018, raising the variable rate by 6 basis points for owner occupiers paying principal and interest and 16 basis points for all other home loan customers.

RateCity.com.au research director Sally Tindall said it’s disheartening to see ME Bank decide to charge its loyal customers more than its new ones.

“ME Bank is clearly under funding pressures, like the other banks, however, they’ve still got one eye focused on getting new customers in the door.

“This is a reminder for all home loan customers to always be looking around for a better deal, don’t just accept a rate rise by your lender.

Impact of rate hike on existing customers

Loan Amount

Old Rate

New Rate

Monthly Difference

Annual Difference

$350,000

3.84%

4.02%

$36

 $434

 $500,000

3.79%

3.97%

$51

 $618

 $1,000,000

3.79%

3.97%

$103

 $1,236

ME Bank Flexible Home Loan Member Package, Principal and Interest LVR 80% or less over 30 years

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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