ME Bank cuts 1 and 5 year fixed rates

Wednesday 4 June, 2014

ME Bank today cut its 1 and 5 year fixed Standard Home Loan interest rates.

  • 1-year fixed Standard Home Loan rate – cut by 0.05% to 4.89% p.a. (comparison rate 5.35% p.a.).
  • 5-year fixed Standard Home Loan rate – cut by 0.40% to 5.39% p.a. (comparison rate 5.40% p.a.).

Both loans are available to members of eligible super funds and unions.

ME Bank CEO, Jamie McPhee, said the cost of fixed rate funding has been falling as global economic weakness persists, local economic growth remains below par, the transition to non-mining economic activity continues, and as expectations grow for some fiscal contraction from the budget.

“Fixed rate funding costs fall as the market pushes out expectations for future RBA rate movements and ME Bank has taken advantage of these falls, passing on the savings to customers.”

McPhee also said that with overall credit growth remaining low the pressure was on many banks to meet their own credit growth expectations and some have been offering cash-back sweeteners to win favour with customers.

“While cash back sweeteners can be nice in the short-term, customers need to understand they can save much more on their home loan in the long-term by locking in a lower rate.” 

 

MATTHEW READ, MEDIA AND COMMUNICATION MANAGER

P 03 9708 3334 M 0432 130 338 Email

ME Bank is the only bank which is 100 per cent owned by Australia’s leading industry super funds. ME Bank provides industry super fund, union and employer association members with a genuinely fairer banking alternative.