Powered by MOMENTUM MEDIA
subscribe to our newsletter

Lender cuts fixed rates by up to 60 bps

A non-major bank has announced that it has cut fixed rates up to 60 basis points for both owner-occupiers and investors, effective 14 October 2019.

ME Bank has announced that it has cut fixed rates for both owner-occupier and investor home loan customers with a Flexible Home Loan and Member Package by between 20 and 60 basis points. 

The changes have been applied to both principal and interest (P&I) and interest-only (IO) loans with loan-to-value ratios (LVR) starting at less than or equal to 90 per cent.

A summary of the fixed rate changes are as follows.

Owner-occupied, P&I repayments with an LVR of less than or equal to 90 per cent:

Advertisement
Advertisement
  • Two-year fixed rate - cut by 39 bps to 2.88 per cent (comparison rate 3.96 per cent)
  • Four-year fixed rate - cut by 40 bps to 3.18 per cent (comparison rate 3.94 per cent)
  • Five-year fixed rate - cut by 50 bps to 2.99 per cent (comparison rate 3.83 per cent)

Investment, P&I repayments with an LVR of less than or equal to 90 per cent:

  • Two-year fixed rate - cut by 40 bps to 3.18 per cent (comparison rate 4.16 per cent)
  • Three-year fixed rate - cut by 20 bps to 3.28 per cent (comparison rate 4.01 per cent)
  • Four-year fixed rate - cut by 60 bps to 3.28 per cent (comparison rate 4.09 per cent)
  • Five-year fixed rate - cut by 60 bps to 3.28 per cent (comparison rate 4.05 per cent)

Investment, IO repayments with an LVR of less than or equal to 80 per cent:

  • Two-year fixed rate - cut by 41 bps to 3.38 per cent (comparison rate 3.4.06 per cent)
  • Four and five-year fixed rates - cut by 30 bps to 3.69 per cent (comparison rate 4.11 per cent)

The announcement of cuts to fixed-rate home loans comes after ME made changes to variable rates across its mortgage products.

The bank announced that it will cut its variable rates by 15 bps, for both new and existing customers, effective 24 October 2019.

Additionally, ME revealed that its online savings account interest rate (base and bonus rate) would also be cut by 15 bps, effective 8 October.

PROMOTED CONTENT


“In setting rates, ME has sought to strike a balance between depositors and home loan borrowers, as well as ensuring the pricing of products remains sustainable given the record-low interest rate environment,” the bank noted in a statement.

[Related: Lenders continue to slash variable rates]

Lender cuts fixed rates by up to 60 bps
ME Bank
mortgagebusiness

Hannah Dowling

Hannah Dowling is a journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.

Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency. 

Hannah graduated from Macquarie University with a Bachelor of Media and Journalism. 

You can email Hannah at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The non-bank lender has announced the launch of specialist interest-free finance option for renewable energy technology. ...

The ME Bank acquisition will widen Bank of Queensland’s customer base to more than 1 million, according to new data from Roy Morgan. ...

The “high end” of the property market in the capital cities has benefited the most from the recent housing upswing, jumping 2.7 per cent...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: How the broking industry has evolved - and what's next for Aussie

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.