ME Bank announces fixed-rate changes

By Gerv Tacadena

ME Bank is the latest home-loan provider to offer a mortgage rate below 3%.

ME Bank is the latest home-loan provider to offer a mortgage rate below 3%.

The recent move by the Reserve Bank of Australia (RBA) to move the cash rate under 1% has triggered many mortgage lenders to reprice their offers and join the sub-3% trend.

ME Bank decided to readjust its fixed rates, offering as much as a 60-basis point discount.

The bank's lowest fixed rate now sits at 2.88%, which is for a two-year fixed term. This offer is available to owner-occupier borrowers under the Member Package.  Borrowers under the Member Package pay an annual fee of $395.

The biggest cut was for investment home loans with four- and five-year fixed-rate terms on a principal-and-interest-rate payment basis.

The tables below show the changes to ME Bank's fixed rate offers:

Flexible Home Loan with a Member Package, Owner-occupied, Principal & Interest, ≤90% LVR

Fixed-rate term

Old rate

Old comparison rate

Change

New rate

New comparison rate

2 Years

3.27% p.a.

4.03% p.a.

-0.39% p.a.

2.88% p.a.

3.96% p.a.

4 years

3.58% p.a.

4.07% p.a.

-0.40% p.a.

3.18% p.a.

3.94% p.a.

5 years

3.58% p.a.

4.06% p.a.

-0.50% p.a.

2.99% p.a.

3.83% p.a.

 

Flexible Home Loan with a Member Package, Investment, Principal & Interest, ≤90% LVR

Fixed-rate term

Old rate

Old comparison rate

Change

New rate

New comparison rate

2 Years

3.58% p.a.

4.23% p.a.

-0.40% p.a.

3.18% p.a.

4.16% p.a.

3 Years

3.48% p.a.

4.18% p.a.

-0.20% p.a.

3.28% p.a.

4.01% p.a.

4 years

3.88% p.a.

4.29% p.a.

-0.60% p.a.

3.28% p.a.

4.09% p.a.

5 years

3.88% p.a.

4.29% p.a.

-0.60% p.a.

3.28% p.a.

4.05% p.a.

 

Flexible Home Loan with a Member Package, Investment, Interest Only, ≤80% LVR

Fixed-rate term

Old rate

Old comparison rate

Change

New rate

New comparison rate

2 years

3.79% p.a.

4.13% p.a.

-0.41% p.a.

3.38% p.a.

4.06% p.a.

4 to 5 years

3.99% p.a.

4.23% p.a.

-0.30% p.a.

3.69% p.a.

4.11% p.a.

More Mortgage News