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ME Bank has slashed interest rates for the lender's fixed home loan products in a bid to keep up with the record-low rates on offer.
The regional lender yesterday cut its three-year fixed Standard Home Loan by 40 basis points to 3.99 per cent, its one-year to 4.29 per cent and it’s five-year to 4.39 per cent.
ME Bank head of home loans, Patrick Nolan, said record-low rates were possible because money markets were already pricing in two more RBA rate cuts.
“Even though the RBA didn’t cut in April, customers can still get their rate cuts today – through a fixed loan,” he said.
“With competition hotting up, many banks will pass these fixed rate savings directly on to customers.”
Mr Nolan noted more banks are introducing greater flexibility into their fixed loans to increase customer appeal.
“We now let new customers pay an extra $30,000 over their fixed term – which is an average of over $830 a month in extra repayment on a three-year fixed term,” he said.
“Banks are working harder than ever before to win new customers,” Mr Nolan added.
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[Related: Fixed-rate demand continues to fall]
