ME cuts both variable and fixed home loan rates

By Polly Fleeting · · 4 min read
Fact Checked
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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.

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Last updated 8 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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Need help with refinancing?

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Learn more

* 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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