ME Bank cuts rates to record low

ME Bank has cut its fixed home loan rates for its three year and five year products.

Its three year term rate has dropped by 31 basis points to a new standard rate of 4.28% per annum.

ME Bank's one year fixed term loan is now offered at 4.69% after a 20 basis point cut, while its five year loan has been cut by 10 basis points to 4.59%.

According to ME Bank, they "retain top spot" for three and five year loans.

ME Bank chief executive Jamie McPhee said the lender has chosen to "immediately pass" savings in the fixed rate market on to borrowers.

"To illustrate, since December 2013, ME Bank has reduced its 5-year fixed home loan by 120 basis points, 3-year by 56 basis points, and 1-year by 20 basis points," said McPhee.

"ME Bank is focused on a strong growth trajectory and home loans will continue to be the most important source of asset growth over the next three years," he said.