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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.
| Product | Loan type | Old advertised rate | New advertised rate | New comparison rate | Change to advertised rate |
|---|---|---|---|---|---|
| Flexible Home Loan fixed 1 year (LVR < 80%) | Owner-occupied | 4.14% | 3.99% | 5.02% | -15 points |
| Flexible Home Loan fixed 2 years (LVR < 80%) | Owner-occupied | 3.99% | 3.89% | 4.90% | -10 points |
| Flexible Home Loan fixed 3 years (LVR < 80%) | Owner-occupied | 4.14% | 3.94% | 4.82% | -20 points |
| Flexible Home Loan fixed 4 years (LVR < 80%) | Owner-occupied | 4.44% | 4.14% | 4.80% | -30 points |
| Flexible Home Loan fixed 5 years (LVR < 80%) | Owner-occupied | 4.64% | 4.14% | 4.73% | -50 points |
| Flexible Investment Loan fixed 4 years (principal & interest) | Investment | 4.74% | 4.54% | 5.42% | -20 points |
| Member Package Flexible Home Loan fixed 1 year (principal & interest) (LVR < 80%) | Owner-occupied | 3.99% | 3.84% | 4.34% | -15 points |
| Member Package Flexible Home Loan fixed 2 years (principal & interest) (LVR < 80%) | Owner-occupied | 3.84% | 3.74% | 4.31% | -10 points |
| Member Package Flexible Home Loan fixed 3 years (principal & interest) (LVR < 80%) | Owner-occupied | 3.99% | 3.79% | 4.31% | -20 points |
| Member Package Flexible Home Loan fixed 4 years (principal & interest) (LVR < 80%) | Owner-occupied | 4.29% | 3.99% | 4.37% | -30 points |
| Member Package Flexible Home Loan fixed 5 years (principal & interest) (LVR < 80%) | Owner-occupied | 4.49% | 3.99% | 4.37% | -50 points |
| Member Package Flexible Investment Loan fixed 4 years (principal & interest) | Investment | 4.59% | 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:
| Loan | Loan type | RateCity average | ME Bank | Difference |
|---|---|---|---|---|
| 1-year fixed | Owner-occupied | 4.18% | 3.84% | 34 points |
| 2-year fixed | Owner-occupied | 4.14% | 3.74% | 40 points |
| 3-year fixed | Owner-occupied | 4.22% | 3.79% | 43 points |
| 4-year fixed | Owner-occupied | 4.55% | 3.99% | 56 points |
| 4-year fixed | Investment | 4.81% | 4.39% | 42 points |
| 5-year fixed | Owner-occupied | 4.60% | 3.99% | 61 points |
ME Bank’s interest rate changes took effect on March 29.
Disclaimer
This article is over two years old, last updated on March 31, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 16 Nov, 2024
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