ME slashes 3 year fixed home loan rate to 3.79%
Article by Kelly Emmerton
While cuts to variable rates have slowed over the past few weeks after the Reserve Bank left the official cash rate steady at its June board meeting, the same can't be said for the fixed rate market, as lenders continue to slash rates for borrowers who are willing to fix.
The newest announcement comes from online lender ME, who has announced today another 0.10% cut to its 3 year fixed rate home loan offer, bringing the current rate to a competitive 3.79% for owner occupiers and 3.89% for investors.
According to our home loan comparison calculator, this low fixed rate would save a borrower switching a $500,000 home loan from the average big 4 variable rate at 4.43%, more than $2,000 in interest each year.
ME also announced last week it will pass on the full 25 basis point reduction from the May RBA rate cut across its variable rate products, positioning it as a compelling choice for borrowers looking to split their home loan between fixed and variable rates.
In Mozo’s recent Experts Choice Awards, ME bagged two awards for its home loans, including Best Value Home Loan Package and Best Value Variable Investor Loan.
Of this most recent rate cut, ME’s General Manager Broker, Lino Pelaccia, said “The cost of fixed rate funding has fallen significantly, savings that ME has decided to pass on to customers in the form of cheaper fixed rates home loans.”
Top fixed rate mortgage offers
- 1 year fixed rate: Newcastle Permanent - 3.59% (comparison rate 4.59%)
- 2 year fixed rate: Newcastle Permanent - 3.64% (comparison rate 4.82%)
- 3 year fixed rate: loans.com.au - 3.67% (comparison rate 3.88%)
- 4 year fixed rate: BCU - 3.80% (comparison rate 4.38%)
- 5 year fixed rate: 3.99% - Greater Bank (comparison rate 4.48%), Teachers Mutual Bank (comparison rate 4.77%), UniBank (comparison rate 4.77%)
Top 3 year fixed rate mortgage offers
- loans.com.au - 3.67% (comparison rate 3.88%)
- UBank - 3.69% (comparison rate 4.00%)
- 3.74% - Teachers Mutual Bank (comparison rate 4.88%), UniBank (comparison rate 4.88%), MyState (comparison rate 4.88%), The Rock (comparison rate 5.30%)
- ME - 3.79% (comparison rate 4.72%)
- BCU - 3.80% (comparison rate 4.40%)