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Our hub for jargon-free advice on managing changes to your home loan and overcoming the rising cost of living.
Navigating Interest Rate Rises
Our hub for jargon-free advice on managing changes to your home loan and overcoming the rising cost of living.
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ME interest rates update.
ME interest rates update.
ME regularly reviews rates on our savings and home loans following each Reserve Bank of Australia’s (RBA) decision to ensure they balance the needs of savers and borrowers and are competitive in the market.
Keep checking this page, as we will keep it up to date with the latest information.
For more information, view our media release.
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What this means for your home loan.
What this means for your home loan.
We know that changes to your home loan and interest rate can be concerning. 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 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.
Financial Difficulty
With the rising cost of living, many Australians are feeling the pinch. ME is here to help. If you’re experiencing financial difficulty, 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.
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.
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Pay off your home loan quicker.
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Clever ways to hack your home loan repayments.
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Future proofing.
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Tips on setting your finances up to withstand changing costs.
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Maximise your savings.
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Rate rises come with a silver lining. Let rising interest rates work in your favour.
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Frequently asked questions:
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Q. Who is the RBA, what is the cash rate and what does it all mean?
The RBA is Australia's central bank. The RBA is responsible for making monetary policy decisions, including setting the cash rate. They can either raise, hold or cut the official cash rate target to manage the Australian economy.
The RBA describes the cash rate as the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage rates and banks can pass these costs down to their borrowers.
Changes to the cash rate are announced on the first Tuesday of every month (except in January).
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Q. Why does ME sometimes pass on a cash rate rise?
While the RBA’s monetary policy has been to keep the cash rate low, the central bank is now raising rates to combat rising inflation.
When the RBA lifts rates, the amount it costs ME to acquire the funds we lend to our customers also increases. This increased cost needs to be factored into the interest rates we charge and, sometimes, this will result in an increase to our interest rates for home loan customers.
ME regularly reviews interest rates to ensure they balance the needs of savers and borrowers and are competitive in the market.
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Q. What were the recent changes to ME's variable rates?
| Month |
Rate Increase |
Effective Date |
| May 2023 |
0.25% p.a. |
13 May 2023 |
| March 2023 |
0.25% p.a |
11 March 2023 |
| February 2023 |
0.25% p.a |
11 February 2023 |
| December 2022 |
0.25% p.a |
10 December 2022 |
| November 2022 |
0.25% p.a |
12 November 2022 |
| October 2022 |
0.25% p.a. |
15 October 2022 |
| September 2022 |
0.50% p.a |
17 September 2022 |
| August 2022 |
0.50% p.a |
6 August 2022 |
| July 2022 |
0.50% p.a |
9 July 2022 |
| June 2022 |
0.50% p.a |
18 June 2022 |
| May 2022 |
0.25% p.a. |
13 May 2022 |
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Q. How much extra will I need to pay on my home loan? And when? How do I find this out?
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.
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Q. When will my repayment amount be changing?
While the interest charged on your home loan will increase from the effective date, your total repayment amount will not change straightaway. Repayment changes take effect at least 1 month after the rate change takes effect, this gives you some time to better prepare for the change.
If you’re a variable rate home loan customer making principal and interest repayments, you will receive a letter in advance of us changing your repayment amount that will clearly outline your latest interest rate, new repayment amount and when it will take effect.
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Q. 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.
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Q. 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.
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Q. What if I can’t afford any increases to my loan?
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.
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