Super fund-owned lender ME has cut its three-year fixed rate below 3.80%.
Effective today, ME’s flexible home loan three-year fixed rate has been dropped 10 basis points to 3.79% for owner-occupiers. For investors, the three-year fixed rate has been reduced by 10 basis points to 3.89%.
Both rates are available for all customers, both principal and interest and interest-only repayments, with no LVR restrictions.
Earlier this month, ME slashed home loan variable rates for new owner occupier and investment customers on its Basic Home Loan and Flexible Home Loan with Member Package.
According to 1300HomeLoan managing director, John Kolenda, interest rates are likely to remain at these historical lows for the next decade.
“Consumers are now very rate sensitive and when [rates] rise they are likely to stop spending and revert to saving.
“This is why we will see rates remain at historical lows or around levels we have experienced for the last number of years. Over the short term it will likely be lower.”
The cash rate has been below what was once considered the normal level of 5% since November, 2008, when the GFC was at its peak.