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Our hub for jargon-free tips and tools on managing changes to your home loan interest rate.
Navigating Interest
Rate Changes
Our hub for jargon-free tips and tools on managing changes to your home loan interest rate.
ME interest
rates update.
ME interest
rates update.
Following the Reserve Bank of Australia’s (RBA) decision to lower the cash rate by 0.25% on 21 May, ME Bank has reduced variable home loan rates by 0.25% per annum (p.a.) from 7 June for new and existing customers.
How rate changes impact your Home Loan.
How rate changes impact your Home Loan.
We know that changes to your home loan and interest rate can be confusing. That's why we're here to help you understand what it means for your loan and offer some helpful tips to prepare for any potential changes.
Variable Loans
If you have a
variable rate home loan, it means that your interest rate and repayments can change with fluctuations in the market. We’ll keep you informed and prepared and will always send you a notification ahead of time to let you know of any changes to your repayment amount and the effective date.
We have some useful tools below that can help you calculate how interest rate changes will affect your loan repayments and how to budget accordingly.
Fixed Loans
If you have a fixed rate loan, you can relax knowing that your repayments will stay the same for the duration of the fixed rate period. But once the fixed rate period ends, your loan will revert to a variable rate, and we'll let you know in advance of what this means for you and the options available.
Since the interest rates might have changed since you fixed, it’s a great idea to start putting aside extra savings now to prepare for when your fixed rate period ends. You’ll find some great advice and resources on getting prepared below.
Have repayment questions? Fixed rate expiring soon?
Call ME on 13 15 63 or book a home loan check in. We'll be happy to answer any home loan questions you have and discuss options that are available based on your specific situation.
Financial Difficulty Assistance.
Financial Difficulty Assistance.
If you’re experiencing financial difficulty, ME is here to help. If you think you won't be able to manage your upcoming repayments, or you’re having difficulty meeting your repayments, reach out to us as early as possible. The sooner you contact us, the sooner we can try to help. The best way to let us know about your situation is to call ME on
1300 500 520.
For further information, please visit our
financial hardship page.
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Frequently asked questions:
What causes my variable home loan rate to change?
The Reserve Bank of Australia (RBA), the nation’s central bank, sets the cash rate to help manage the Australian economy. This rate determines the interest banks pay to borrow funds and directly impacts mortgage rates. The RBA reviews the cash rate eight times a year, deciding whether to raise, hold, or cut the rate. Lenders may pass these changes on to their borrowers.
Lenders may also adjust home loan rates independent of the RBA. These changes are often influenced by factors such as shifts in funding costs, market conditions, or the need to balance the interests of savers and borrowers while staying competitive.
If my interest rate changes, how will I know what my new repayments will be?
In the event of a rate increase, ME will send existing variable rate customers a letter informing you of your new repayment amount and when this will take effect.
You can also use the rate rise calculator above to see how your repayments may change.
For existing home loan customers currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.
Is there any change to my fixed rate loan?
For our existing home loan customers currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.
When you approved my loan how did you know I could afford it?
ME applies a number of ‘tests’ when assessing customers’ ability to repay a loan.
These ‘tests’ include consideration of potential movements in interest rates over the life of the loan and evaluate a customer’s living expenses against their income.
Along with requirements by Australia’s banking regulators, these ‘tests’ are put in place to assess if a customer can still meet repayments in a higher interest rate environment before approving a loan.
What can I do if I’m having difficulty meeting my home loan repayments?
We’re here to help. If you are having trouble making loan repayments, the best thing you can do is get in touch with our Customer Assistance Team as soon as you can once you know what your new repayments are.
Further details on the ME’s assistance for those experiencing financial difficulty, can be found on our financial assistance page.
The Australian Banking Association’s Financial Assistance Hub is also an excellent resource to help you understand the options that may be available if you are in financial difficulty.