ME report home loan growth, as Aussies break away from the big four

Tara McCabe

23 Sep 2019

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Are you searching for a home loan? Well you might want to read on, because ME have just released their full year results for 2019 and it looks like the super-fund owned bank’s home loan packages are becoming increasingly popular.

This comes not long after reports that more and more Aussies are turning away from the big four banks for banking and other financial needs. According to ME’s report the bank increased its home loan portfolio by 7.3% to $26.3 billion from June 2018 to June 2019, a whopping 2.5 times the 3% market growth.

As CEO Jamie McPhee said, “Despite experiencing one of the toughest years in banking, with record low credit growth, record low interest rates, a highly competitive environment, and increased regulation and compliance, ME has grown strongly in both home loans and household deposits and has increased its market share and customer base.”

Indeed, ME’s customer numbers have increased a notable 9% throughout the year, that’s a sizeable 1 in 50 Australians that now keep their money with the online bank. The company’s net profits did fall from $89.1 to $67.1 million, but with RBA cuts and a number of banking regulation changes throughout the year this isn’t too much of a surprise. In fact, Commbank and Westpac also reported a decrease in net profits in 2019.

That said, with ME holding a 1.53% share of the home loan market (in June 2019) and more and more Aussies thinking outside the big four box, this online bank and others like it could be set for more growth in the next year.

ME offer a number of home loans, including the Flexible Home Loan Package (Member Package) which has a variable rate of 4.51% p.a. (comparison rate 4.91% p.a.) when taking out a principal and interest loan between $40,000 and $149,999 (with an LVR <80%). It is worth noting that this member package does come with a yearly fee of $395, so before you sign up it might be worth checking out Mozo’s home loan repayment calculator, to see if this deal will save you money in the long run.

Or if you want to check out other home loan deals head to our home loans comparison page or take a look at the deals below.

Compare home loan deals - rates updated daily

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    $1234

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    Variable Home Loan

    Get full approval online. Award-winning platform could save you thousands with super-low rates. No application, valuation or settlement fees. Fee-free redraws and extra repayments. Optional offset account for $10 per month. Winner of a Mozo Experts Choice Award 2019 for Online Home Lender of the Year 2019.^

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    • Optional - $10 per month

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    Homestar

    2.74% p.a. variable

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    $1234

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    Star Essentials Home Loan

    One of the lowest home loan rates in town packed with essential features. No application or ongoing fees. Unlimited additional repayments with free online redraws. Min. loan size $150k, no construction loans.

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    • $596

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    • 80.00%

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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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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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