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

Tara McCabe

23 Sep 2019

redactor/hero-images/1010/mother-daughter-plants_content.jpg

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. Advertiser disclosure.

  • loans.com.au

    2.48% p.a. variable

    2.50% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    • 2.48% p.a. variable

    • 2.50% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan 80

  • HSBC

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan

    Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^

    • 2.09% p.a.
      fixed 2 years

    • 2.98% p.a.

    • $0

    • $0.00

    • $300.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $0

    • 80.00%

    • $50,000

    • $7,500,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Athena

    2.34% p.a. variable

    2.34% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • 2.34% p.a. variable

    • 2.34% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

  • UBank

    2.49% p.a. variable

    2.49% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • 2.49% p.a. variable

    • 2.49% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Hot Deal $2,000 Refinance Cash Bonus (T&Cs apply)

    Suncorp

    2.68% p.a. variable

    2.69% p.a.

    $1234

    Product details Close details
    Back to Basics Special

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply.

    • 2.68% p.a. variable

    • 2.69% p.a.

    • $0

    • $0.00

    • $350.00

    • Yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Refinance from another lender to receive a $2,000 cash bonus for loans of at least $250,000 or $3,000 bonus for loans over $750,000. Available for loans with an LVR <90% and applications made by 18 December 2020 and settled by 26 March 2021.

    Read our Mozo Review to learn more about the Back to Basics Special

^See information about the Mozo Experts Choice Home loans Awards