28-Aug-2020 • Corporate

From today, ME is going below 3% p.a. on its variable rate Basic Home Loan with cuts of up to 59 basis points.

ME’s lowest variable rate for new customers will become 2.58% p.a., one of the most competitive comparable rates in the market – and the lowest advertised variable rate the bank has ever offered.

New and refinancing owner occupier customers paying principal and interest with a minimum loan balance of $150,000 are eligible.

ME General Manager, Home Lending Andrew Bartolo said: “This new offer delivers exactly what many Australians want – simplicity, low rates, and no ongoing account keeping fees.”

Mr Bartolo added: “ME’s Basic Home Loan is already very simple, with no frills or fancy features and no ongoing account keeping fees. Cutting variable rates below 3% p.a. for this product will make it even simpler and better value for our customers.”

As an example, eligible customers with a 20% deposit can apply for the 2.58% p.a. variable rate (a 59 basis point reduction) and those with a 5% deposit can apply for the 2.99% p.a. variable rate (a 53 point reduction).

The headline rate changes are as follows:

Product Previous Rate % (p.a.) Change % (p.a.) New Rate % (p.a.)
Basic Home Loan variable rate owner occupier – principal and interest
(new and refinancing customers)
LVR 80% or less 3.17 -0.59 2.58
LVR more than 80% (LMI applies) 3.52 -0.53 2.99

All changes are effective from 28 August 2020. Only applications submitted on or after this date will be eligible for the new rates.