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

By Niko Iliakis · · 5 min read
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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.

Last updated 18 June 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank
  • Promoted

    Variable Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • $0 application fee to pay
    • Apply in as little as 15 minutes

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.52 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Pre-approval valid for 3 months

  • Variable Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • $0 application fee to pay
    • Apply in as little as 15 minutes

  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.58 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.63 % p.a.
    Variable
    Comparison rate
    5.66 % p.a.
    Initial monthly repayment
    $2,880
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.66 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • Free extra repayments
    • Easy redraw facility
    • No annual fee to pay

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months

  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.89 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Offset Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.87 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options
Showing 10 results from 417 home loans. Use the filters to see more

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* 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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