More lenders join in rate cuts

by Maya Breen11 Feb 2015
ME Bank has announced further rate cuts, dropping its fixed rate home loans to record lows. This announcement comes after the lender slashed its variable interest rate last week.

The non-major has cut its 1-year fixed rate by 20bps to 4.69%, its 3-year fixed rate by 31bps to 4.28% and its 5-year fixed rate by 10bps to 4.59%.

ME Bank CEO, Jamie McPhee says the cost at which ME Bank borrows in the fixed rate market has been falling, allowing them to pass on savings to customers.

“To illustrate, since December 2013, ME Bank has reduced its 5-year fixed home loan by 120 basis points, 3-year by 56 basis points, and 1-year by 20 basis points,” he said.

Bluestone has also announced rate cuts on their Lite Blue and Clean Slate products. The group has cut the interest rate on these products by up to 40bps, effective 6 February.

Bluestone includes unlimited arrears and debt consolidation in their loans and no LMI or credit scoring.