ME Bank cuts rates for one and five year fixed Standard Home Loans

ME Bank cuts rates for one and five year fixed Standard Home Loans
Jessie RichardsonDecember 7, 2020

ME Bank cut the its one year Standard Home Loan rate by 0.05% and its five year Standard Home Loan rate by 0.4%.

The bank’s one year Standard Home Loan now has a 4.89% per annum interest rate, with a comparison rate of 5.35% per annum. The five year fixed Standard Home Loan rate is now at 5.39% per annum, with a comparison rate of 5.40%.

According to ME Bank, it currently offers the lowest three year and five year fixed home loan rates on the market. Chief executive Jamie McPhee said that the cost of fixed rate funding has been falling amidst persisting “global economic weaknesses” and growing expectations for fiscal tightening after the budget.

“Fixed rate funding costs are falling as the market pushes out expectations for future RBA rate movements. ME Bank has taken advantage of these falls and is passing on the savings to customers,” he said. He also noted the economy’s ongoing transition away from the mining sector and “below average” domestic economic performance.

McPhee warned customers not to be swayed by cash-back incentives offered by some banks.

“Cash back sweeteners can be nice in the short-term, but customers should understand they can save much more on their home loan in the long-term by locking in a lower rate," said McPhee.

For more interest rate coverage, see:

Moderation in pace of house prices lately, despite significant yearly growth: Glenn Stevens' June statement

Thanks to low interest rates, affordability at highest level for over a decade: HIA-CBA index

 

 

 

 

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