ME cuts both variable and fixed home loan rates

Thought there wouldn’t be any more rate cuts this February? Think again. 

On Tuesday, ME Bank cut its home loan rates by up to 19 basis points for borrowers making principal and interest repayments. 

The cuts come before another potential cut to the Reserve Bank of Australia’s official cash rate in the coming months, however, it is not out of suit as other lenders across Mozo’s database have also made cuts to existing loans and introduced new lower mortgage rates recently

ME has reduced its Flexible Home Loan (Member Package) variable rates for both owner occupiers and investors with LVRs of 80% or lower. 

Here’s a rundown of the changes made for owner occupiers: 

Loan AmountNew Variable RateNew Comparison Rate*
Change
$400k - $700k3.09%3.48%*-0.10%
$700k +3.04%3.53%*-0.10%

Changes made for investors: 

Loan AmountNew Variable RateNew Comparison Rate*Change
$400k - $700k3.38%3.81%*-0.15%
$700k +3.38%3.81%*-0.10%

Plus, ME also made changes to its Fixed Rate Flexible Home Loan (Member Package) but only on its investor option for borrowers with an LVR of 90% or less. 

Fixed TermNew Fixed RateNew Comparison Rate*Change
3 Years3.09%3.97%*-0.19%


Which other lenders have cut home loan rates in February 2020? Here’s a roundup… 

ME isn’t alone in dropping new mortgage rates this month, as other lenders like HSBC, loans.com.au, Homestar and even CommBank have all come out with lower rates in the past few weeks. 

  • The first cab off the rank this month was no other than CommBank who slashed fixed home loan rates. The bank dropped rates for its Fixed Home Loan by up to 0.30% for owner occupiers and 0.50% for investors, now offering its lowest non-packaged fixed rate of 3.14% (4.51% comparison rate*) for a 1 year term for owner occupiers making principal and interest repayments. 
  • HSBC cut its discounted Home Value Loan to a low 2.90% (2.91% comparison rate*). The offer is only available to new customers that have a deposit of at least 20% (given they apply by 30 April, 2020). 
  • Loans.com.au introduced a new home loan product - the Smart Home Loan 75 - with a fresh variable rate of 2.78% (2.80% comparison rate*). The catch is, you must have an LVR of 75% or lower to qualify for the loan. 
  • Homestar also joined the party with its new Star Gold Home Loan that comes with a shiny low rate of 2.69% (2.72% comparison rate*). This loan is designed for borrowers with a deposit or equity of at least 40%, making it a great option for refinancers. 

RELATED ARTICLE: This new rock bottom rate has borrowers switching 

Want to see how these home loans compete against the rest? Take a look at some of the mortgage options below or jump over to our home loan comparison table.

Home Loans 2020 - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.19% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
    placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Go to site
    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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