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.

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