ME Bank cuts first after February RBA announcement

In what was the first of the expected lender announcements, ME Bank will pass on today’s full 0.25% RBA rate cut to customers.

ME Bank’s Standard Home Loan variable interest rate will drop to 5.13% per annum and its member package rate will fall to 4.93% per annum.

The new home loan rates are effective 20 February 2015.

Last month ME Bank cut its five-year fixed rate home loan by 25 basis points to 4.69% per annum.

Their three year fixed rate loan is at a record low of 4.59%, which brings both their three year and five year offerings to the cheapest on the market, according to ME Bank CEO Jamie McPhee.

“The cost at which ME Bank borrows in the fixed rate market has been falling. In turn, we can pass on these savings to customers,” he said.

“Unlike the majors, we’re keen to pass these opportunities on to customers and continue our aggressive position in the home loan market.”

McPhee said that, as well as their competitive rates, they recently made the decision to extend home loan offers to all borrowers, both members and non-members of Industry Super Funds and unions.

APRA statistics saw ME Bank boosting investor lending by 39.1% and owner occupied lending by 11.5% during the 12 months to 30 November 2014.