ME Bank slashes its fixed rates, now offers a home loan starting with a 2
This morning, online lender ME Bank announced it would be cutting fixed home loan rates across many of its owner occupier and investor options by as much as 60 basis points, coming into effect today.
According to ME Bank, the two year ME Flexible Home Loan (Member Package) now offers a record low rate of 2.88% (3.96% comparison rate*).
Investors will also now receive a two year fixed rate of 3.18% (4.16% comparison rate*) on the same loan.
Mozo Banking Expert, Peter Marshall, said that these new rates could work in favour of first home buyers.
“One of the benefits of having a fixed rate is that your repayments won’t change over the fixed period, which can help a first home buyer start their home loan journey with a bit of certainty,” he said.
Despite the security of locking in your rate, Marshall went on to explain that a fixed rate may work best as a temporary solution.
“Bare in mind, fixing your rate may see you miss out on any rate drops in the future, as I expect that another RBA rate cut may be right around the corner. So if you are considering a fixed rate home loan, it might be best to opt for a shorter term.”
Want a closer look at the ME Flexible Home Loan (Member Package)? You got it!
Find out how the ME Flexible Home Loan stacks up against other home loan deals by heading over to our home loan comparison tool.
* 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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