07-Jul-2022 • Corporate
Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, ME has today announced a number of interest rate changes for home loan and deposit customers.
From 9 July, ME will lift variable home loan interest rates by 0.50% per annum (p.a.) for new and existing customers.
ME is keenly aware of the need to balance the needs of our borrowers and savers and from 15 July, will increase rates on its popular Online Savings Account while continuing to offer the best rates in the market on its term deposits products.
CEO ME Bank, Martine Jager said: " While our home loan rates remain historically low, we're extremely conscious of how these changes are impacting household budgets.
“In making our decision, we’ve carefully considered our customers, our business and cost of living pressures, and we have a range of support options and dedicated teams available to help to our customers.
“We’re also increasing our popular Online Savings Account by 0.50% (p.a.), which will provide another boost for our savers after the increases we’ve made over the past two months,” Ms Jager said.
Support available for Customers
ME has a range of online resources available for customers including various calculators to help plan your budget. ME is here to help customers experiencing financial difficulty and encourages customers to contact our dedicated support team for advice in tailoring a solution to meet their needs. For existing home lending customers on a variable rate, ME will advise them of their new monthly repayment amount. ME encourages customers to call 13 15 63 if they require further assistance or support.
Tips to get the most out of your home loan rate:
1. Reduce interest with an offset account: An offset account is a stand-alone savings account that’s linked to a home loan, with the same lender. Make regular or one-off deposits to an offset account and withdraw from it as needed, so it operates like a normal transactional savings account. It even comes with a ME buck debit card to withdraw cash from an ATM.
2. Get the flexibility of a redraw facility: A redraw facility isn’t a separate account from a home loan. Instead, it’s a feature of a variable rate mortgage that enables making additional repayments into a home loan, above the minimum payment amount. This reduces the balance owing on a home loan, which means paying less interest and can paying the loan off faster. Understanding the practical differences between these options can help customers make the best decision for their circumstances.
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Legal notes:
Interest rates expected at 15 July are subject to change’. Terms, conditions, fees and charges apply. This is general information only and you should consider if these products are appropriate for you.