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ISCOVER
Staff Reporter
One of Australia’s non-majors has issued a challenge to the big four banks, launching the cheapest three-year fixed rate mortgage in the market.
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Yesterday, ME Bank confirmed it had cut the interest on its three-year fixed rate mortgage to just 4.99 per cent for both packaged and non-packaged loans.
The new three-year fixed rate, available to eligible super fund and union members, is currently the lowest in the market and the lowest ME Bank has offered since becoming a bank in 2001.
ME Bank said the offer may not last long as funding is limited and interested borrowers are encouraged to get in quickly.
“Now is an excellent time to fix rates,” ME Bank chief executive Jamie McPhee said.
“With rates at 30-year lows and signs global economies are improving there is limited scope for the Reserve Bank of Australia (RBA) to make further rate reductions.
“Therefore fixed rates – usually a good indicator of the future RBA cash rate – may not get much cheaper.
“It won’t get much better than this.
“When considering their decision to fix, borrowers should also think in terms of personal circumstances.
“Fixing is like insurance: if your current circumstances mean higher rates put you under stress then fixing can be an important strategy – the trade off is reduced flexibility and there may be costs if you decide to exit early.”
