ME jumps on the bandwagon, cuts rates for owner occupiers and investors

Today, ME Bank announced it will be cutting rates across a range of its packaged and non-packaged home loans for fixed and variable rates.

The cuts range between 8 and 26 basis points and will apply to offerings for both owner-occupiers and investors, effective today.

This follows similar moves by ANZ and Macquarie, which both slashed rates across several of their products last week and Mozo Online Home Lender of the Year, Tic:Toc, which slashed its rate to the lowest in the market following the RBA rate decision.

ME’s fixed rates saw the largest cuts, with 3 year fixed rates for owner occupiers dropping by 21 basis points and 2 year rates for investors dropping by 26 basis points.

Owner occupiers who sign up for the fixed rate Flexible Home Loan (Member Package) can now receive an interest rate from as low as 3.58% p.a. (4.26% comparison rate*).

Flexible Home Loan (Member Package) Fixed Rates

ProductPrevious rateChangeCurrent rate
3 Year Owner Occupier, P&I, ≥80% LVR3.79% p.a.-0.21%3.58% p.a. (4.26% p.a. comparison rate*)
3 Year Owner Occupier, P&I, 80-90% LVR3.79% p.a.-0.21%3.58% p.a. (4.58% p.a. comparison rate*)
2 Year Investor, P&I, ≥80% LVR4.14% p.a.-0.26%3.88% p.a. (4.54% p.a. comparison rate*)
2 Year Investor, P&I, 80-90% LVR4.14% p.a.-0.26%3.88% p.a. (4.68% p.a. comparison rate*)

With key funding costs now much lower than they were last year ME is one of many lenders going ahead with variable rates cuts. It reduced variable rates for owner occupiers by 8 basis points.

Borrowers paying principal and interest on a loan from $400,000 with an LVR of 80% or less can now receive a variable rate of 3.79% p.a. (4.22% p.a. comparison rate*) on the variable rate ME Flexible Home Loan Member Package.

Variable rates for investment loans saw reductions of 10 basis points. Interest rates now sit at 4.17% p.a. (4.59% p.a. comparison rate) for investment loans of between $150,000 and $700,000.

Flexible Home Loan (Member Package) Variable Rates

ProductPrevious rateChangeCurrent rate
Owner Occupier, P&I, $400,000-$700,0003.87% p.a.-0.083.79% p.a. (4.22% p.a. comparison rate*)
Owner Occupier, P&I, ≥$700,0003.87% p.a.-0.083.79% p.a. (4.22% p.a. comparison rate*)
Investor, P&I, $150,000-$400,0004.27% p.a.-0.104.17% p.a. (4.59% p.a. comparison rate*)
Investor, P&I, $400,000-$700,0004.27% p.a.-0.104.17% p.a. (4.59% p.a. comparison rate*)
Investor, P&I, ≥$700,0004.27% p.a.-0.104.17% p.a. (4.59% p.a. comparison rate*)

Is now the time to get a home loan?

With all the cuts that have been made as of late, those of us with our eyes on the market might be tempted to finally take the next step.

But if you’re thinking about locking in a fixed rate, Mozo Product Data Manager Peter Marshall suggests waiting before making any moves.

“Fixed rates are much lower with cuts being made ahead of one or two cuts to the RBA cash rate before the end of this year,” he said

“While it might be tempting to grab one of the very low fixed rates around right now, if the RBA cuts the cash rate by 50bp over coming months we could be seeing variable rates that start with a '2', so it might be worth sticking with a variable rate for now until we see what happens.”

For an idea of what variable rates look like at the moment, be sure to check out our variable rate home loan comparison page, or check out some of the options below.

Home loan comparisons on Mozo - 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

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

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

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    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

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

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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

    Owner Occupier, LVR<60%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.14% p.a.
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

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

* 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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