ISCOVER
ISCOVERME 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:
- 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.
“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]
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.
