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Bankwest, ME and UBank to cut interest rates

Bankwest, ME and UBank to cut interest rates

Australia’s tenth largest bank ME bank has today cut its variable and fixed interest rates by up to 0.26 per cent, on the same day as competitor UBank also announced fixed rate cuts of up to 0.30 per cent effective Friday, 17 May.

Both lenders have cut rates across their owner-occupier and investor home loans (see tables below).

RateCity.com.au research director Sally Tindall said it’s good to see competition in the home loan market heating up.

“The big four banks have all cut their fixed rates in recent weeks forcing smaller lenders like ME and UBank to follow suit to stay in the game,” she said.

“We’re likely to see more lenders drop their fixed rates in coming weeks, particularly as speculation of an RBA rate cut mounts.”

Today Greater Bank went against the trend and raised all its variable rates by 0.10 per cent. The lowest variable rate now offered by Greater Bank is now 3.82 per cent for new customers only.

ME bank rate changes

Owner-occupier (P&I)

Cut

New rate

Variable ($400-$700K)

-0.08%

3.79%

3-year fixed  ≤80% LVR

-0.21%

3.58%

Investor (P&I)

Cut

New rate

Variable ($400-$700K) ≤80% LVR

-0.10%

4.17%

2-year fixed  ≤80% LVR

-0.26%

3.88%


UBank rate changes

Owner-occupier (P&I)CutNew rate
3-year fixed-0.15%3.59%
5-year fixed-0.15%3.94%
Investor (P&I)Investor (interest only)
CutNew rateCutNew rate
1-year fixed3.99%*-0.054.14%
3-year fixed3.99%*-0.05%4.14%
5-year fixed-0.25%4.24%-0.30%4.39%

Bankwest also cuts rates

Bankwest has announced cuts to its fixed rates, effective on Friday 17 May.

The most notable change from Bankwest is a 0.50 per cent cut to its 3-year owner-occupier fixed home loan. At 3.48 per cent, this will make it the lowest 3-year fixed rate on the market.

RateCity.com.au research director Sally Tindall said, “Fixed rate cuts are coming thick and fast, as lenders scramble to remain competitive.”

Bankwest Product

Old rate

New rate

Change

Complete fixed home loan, 3 years, owner occupier

3.98%

3.48%

-0.50%

Complete fixed home loan, 3 years, investor

4.08%

3.88%

-0.20%

Note: Rates are for customers paying principal and interest. Rates effective 17.05.2019

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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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