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 Amount | New Variable Rate | New Comparison Rate* | Change |
|---|---|---|---|
| $400k - $700k | 3.09% | 3.48%* | -0.10% |
| $700k + | 3.04% | 3.53%* | -0.10% |
Changes made for investors:
| Loan Amount | New Variable Rate | New Comparison Rate* | Change |
|---|---|---|---|
| $400k - $700k | 3.38% | 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 Term | New Fixed Rate | New Comparison Rate* | Change |
|---|---|---|---|
| 3 Years | 3.09% | 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 - last updated January 16, 2021
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
Sorted by:
Mozo Order
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
Go to siteCompare
2.34% p.a. variable
2.34% p.a.
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.34% p.a. variable
2.34% p.a.
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
Go to siteCompare2.19% p.a. variable
2.19% p.a.
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Go to siteCompare2.04% p.a.
fixed 2 years2.79% p.a.
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
2.04% p.a.
fixed 2 years2.79% p.a.
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Go to siteCompare2.09% p.a.
fixed 2 years2.56% p.a.
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
2.09% p.a.
fixed 2 years2.56% p.a.
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
Go to siteCompare2.19% p.a. variable
2.20% p.a.
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
2.19% p.a. variable
2.20% p.a.
Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process.
Go to siteCompare
^See information about the Mozo Experts Choice Home Loans Awards
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