ME announces home loan interest rate changes

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27 August 2015

ME today announced changes to its variable and fixed home loan interest rates for investor and selected owner occupied loans.

Effective 15 September 2015 ME’s Basic Variable home loan interest rate for new investor borrowers will rise by 0.40% to 4.69% p.a.* (comparison rate 4.70#) and its Flexible home loan with member package^ interest rate for new investor borrowers will increase by 0.36% to 4.89% p.a.* (comparison rate 5.28#). Rates across existing investor loans will also rise by 0.41%.

Fixed rates for new owner occupied borrowers will fall between 0.09% and 0.50% across its 3 to 7 year terms, including our 3-year fixed rate falling 0.09% to 4.19% p.a.* (comparison rate 4.71#).

ME CEO, Jamie McPhee, said the changes have been precipitated by a major changes in the banking industry which have forced banks including ME to review their lending practices and pricing.

APRA introduced new regulatory measures to reinforce sound residential lending practices last December, including actions to restrict investor lending growth to no more than 10% p.a.

“The changes we have announced today will advantage owner occupied borrowers particularly those seeking to buy their first home,” McPhee said.

“The decision to increase investment rates was a difficult one, but after careful consideration we believe that combined with rate cuts across selected owner occupied home loans it strikes the right balance across our portfolio.”

Existing loans – new rates effective 15 September 2015

Product OO Rate (% p.a.)* OO comparison rate (% p.a.)# Inv rate (% p.a.)* Inv comparison rate (% p.a.)#
Standard, Interest Only 4.88 4.89 5.29 5.30
Standard, Interest Only, Ultimate – Member Package 4.68 5.07 5.09 5.48
Ultimate 5.18 5.19 5.59 5.60

 

New loans – new rates effective 15 September 2015

Product OO Rate (% p.a.)* OO comparison rate (% p.a.)# Inv rate (% p.a.)* Inv comparison rate (% p.a.)#
Basic Variable 4.29 4.30 4.69 4.70
Flexible 4.88 4.89 5.39 5.40
Flexible – Member Package  4.38  4.78  4.89  5.28

 

Fixed rates – new rates effective 15 September 2015

Product OO Rate (% p.a.)* OO comparison rate (% p.a.)# Inv rate (% p.a.)* Inv comparison rate (% p.a.)#
1 year 4.29 4.84 4.59 5.33
2 year 4.29 4.78 4.69 5.27
3 year 4.19 4.71 4.69 5.21
4 year 4.59 4.79 4.89 5.23
5 year 4.59 4.77 4.89 5.19
6 year 5.49 5.19 6.29 5.85
7 year 5.49 5.23 6.29 5.91
Fixed Interest in Advance NA NA 4.39 5.31

 

*Proposed interest rates effective 15/9/2015 are subject to change. Credit criteria, terms, conditions, fees and charges apply. #Comparison Rate based on a loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. ^A Member Package annual fee of $395 applies. Members Equity Bank Limited ABN 56 070 887 679 Australian Credit Licence 229500.

 

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