ME Bank sharpen fixed mortgage rates by up to 0.40%
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.
Fixed home loan comparisons on Mozo
-
Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.74
%
p.a.
Fixed 3 years
- Comparison rate
-
6.81
%
p.a.
- Initial monthly repayment
-
$2,915
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.
- interest rate
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
- Special Offers
-
$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
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Your selected home loans
* 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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