The online lender has cut rates on its Well Balanced mortgage for owner-occupiers.
The two-year fixed rate has been slashed to 2.74% p.a. (comparison rate 2.96% p.a.) while the three-year fixed rate has also been reduced to 2.74% p.a. (comparison rate 2.94% p.a.).
Those could be the lowest fixed home loan rates in the country, beating Greater Bank’s fixed rate of 2.79% p.a. (at the time of writing).
Despite the Reserve Bank opting to keep the cash rate steady at its most recent meeting, that hasn’t stopped lenders from cutting their home loan rates.
With more RBA rate cuts expected to come, these are likely not the last cuts to home loan interest rates we can expect to see.
ME Bank home loan rate cuts
ME Bank has hopped on board the bandwagon, trimming rates on its fixed and variable home loans for investors and owner-occupiers, effective from today.
The discounts are only available for new customers and the $395 package fee still applies.
The bank’s Flexible Home Loan with Member Package will now have a variable rate of 3.29% p.a. (comparison rate 3.73% p.a.) which the lender has said is its “most competitive advertised variable rate ever”.
That rate is only on offer for owner-occupiers paying principal and interest with an LVR of 80% or lower and a loan amount of $700k or more.
Owner-occupiers borrowing $400k making principal and interest repayments with an LVR between 80% and 90% can enjoy a variable rate of 3.57% p.a. (comparison rate 4.00% p.a.).
Fixed-rate borrowers haven’t been left out either. New customers can score three-year fixed rates from 3.48% p.a. across its investment loans (comparison rates differ).
Investors making principal and interest repayments with an LVR of 90% or below can enjoy a fixed rate of 3.48% p.a. (comparison rate 4.25% p.a.).
If you’re an investor making interest-only repayments with an LVR of 80% or under, a fixed rate of 3.69% p.a. will now apply to your loan (comparison rate 4.18% p.a.).
Heritage Bank home loan rate cuts
Heritage Bank has joined in on the action, cutting rates on its fixed home loans for owner-occupiers by up to 0.30%, effective from today for new customers only.
The bank’s Home Advantage loan will now have a fixed rate of up to 3.49% p.a. (comparison rates differ).
The two-year fixed rate has been cut to 3.09% p.a. (comparison rate 3.72% p.a.) while the three-year fixed rate has been cut to a competitive 2.99% p.a. (comparison rate 3.67% p.a.). The five-year fixed rate has been trimmed to 3.49% p.a. (comparison rate 3.81% p.a.).
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