01-Feb-2019 • Corporate
ME today announced it will increase its home loan interest rates for both new and existing customers.
The bank will increase reference rates for all existing variable home loan customers by 18 basis points, effective 7 February.
It will also increase its advertised new business variable rates by 8 basis points effective 4 February, following a 10 basis point increase to some advertised new business variable rates in December 2018.
ME CEO, Jamie McPhee, said “the changes are in response to the sustained increase in the cost of funds.
“Bank bill swap rates (BBSW) – the key determinant of the cost of funds – have remained elevated.
“It was a difficult decision but we have sought the right balance between delivering a strong customer value proposition across our product range while responding to the sustained increase in funding costs.
“Even after these changes, ME’s variable reference rates remain lower than the major banks’ advertised variable reference rates.”
– Ends –