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
    Smart Booster Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    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. Winner of two Mozo Expert's Choice Award for 2021.

    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 3 years
    2.22% 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
  • 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
    2.43% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

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

    Go to site
    Details
  • placeholder
    Fixed Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.15% p.a.

    Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^

    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.

    Great fixed low rate. Ability to split your loan between fixed and variable. Insurance discounts and $0 credit card or personal loan fee available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Enjoy local branches and call centre.

    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 Loans Awards

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