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!