ME Bank sharpen fixed mortgage rates by up to 0.40%

By Tom Watson · · 2 min read
Fact Checked
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ME Bank has joined the swelling ranks of lenders making cuts to short-term fixed home loan rates by reducing a number of offers between 20 to 40 basis points.

The revised rates which came into effect on August 21 are available to owner occupiers looking to refinance or take out a new home loan. Here are the key changes:

Flexible Home Loan (Fixed, Member Package)

  • 1-year fixed rate: Cut by 20 basis points to 2.19% (3.44% comparison rate*)
  • 2-year fixed rate: Cut by 30 basis points to 2.19% (3.36% comparison rate*)
  • 3-year fixed rate: Cut by 40 basis points to 2.19% (3.30% comparison rate*)

Flexible Home Loan (Fixed)

  • 1-year fixed rate: Cut by 20 basis points to 2.34% (4.16% comparison rate*)
  • 2-year fixed rate: Cut by 30 basis points to 2.34% (3.99% comparison rate*)
  • 3-year fixed rate: Cut by 40 basis points to 2.34% (3.84% comparison rate*)

While the rates available with ME’s Flexible Home Loan (Fixed, Member Package) are lower than with the Flexible Home Loan (Fixed), the former does come with a $395 yearly service fee. The package does also include a number of fee waivers. 

ME’s general manager for home lending, Andrew Bartolo said many customers are looking for the increased certainty of a low fixed rate for shorter periods. 

“This new offer is designed to give them the right mix of certainty and flexibility at one of the lowest rates currently in the market, for the length of time that best suits them,” he said. 

How do ME’s fixed rates stack up? 

According to our latest home loan statistics, ME Bank’s newly revamped rates all sit well below the respective fixed rate averages which are currently: 2.58% for 1-year fixed rates, 2.54% for 2-year fixed rates and 2.62% for 3-year fixed rates. 

In fact, the 2.19% fixed rates available with ME’s Member Package offer rank among the very lowest in the Mozo database. 

These cuts are part of a much wider trend in which short-term fixed rates (1, 2 and 3 years in particular) have become increasingly competitive in recent months.

Spurred on by the availability of cheap funding via the Reserve Bank’s three-year Term Funding Facility as well as comments from RBA Governor, Philip Low, that suggested low rates are here to stay, lenders have been reducing fixed rates left, right and centre. 

As a result not only are fixed home loan rates now generally lower than variable rates, borrowers even have access to fixed rates below the 2.00% mark. 

RELATED: Home loan refinance: 94% of mortgage holders could be losing out by failing to switch

Ready to see just how far fixed rates have fallen? Check out some of the competitive rates on offer from the banks in the table below, or head on over to our dedicated fixed home loans comparison table for even more offers from a larger range of lenders.

Home loan comparisons on Mozo

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Last updated 27 July 2024 Important disclosures and comparison rate warning*

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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