Home loan lender ME announced a range of interest rate cuts across variable and fixed rate products, including a variable rate below four per cent for new owner-occupiers with a maximum loan-to-value ratio of 80 per cent.

The variable rate for owner-occupiers decreased by six basis points to 3.95 per cent. Similarly, the variable rate on its investment Flexible Home Loan with Member Package has been reduced by nine basis points to 4.15 per cent.

The lender also cut its one and two-year fixed rates by 30 basis points on its Flexible Home Loan for owner-occupiers to 3.99 per cent. The four and five-year fixed rates have also been cut by 10 basis points to 4.49 per cent.

Even investors can benefit from the rate cut. The Flexible Home Loan for investors has been discounted by 20 basis points on its one and two-year fixed rates to 4.09 per cent.

All these interest rate cuts being implemented by ME starting this week follow the Reserve Bank of Australia’s decision to cut the cash rate in May to a record low of 1.75 per cent. According to Mortgage Choice’s latest national home loan approval data, demand for variable rate mortgages has also risen following the official rate cut.

“It was hardly surprising to see a lift in demand for variable rate products this month. Borrowers are clearly looking to take advantage of the historically low rate environment,” said John Flavell, Mortgage Choice CEO.

“And, with many economists predicting at least one more rate cut this calendar year, I wouldn’t be surprised to see demand for variable rate products remaining strong for the foreseeable future.”

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan