ME Bank has undercut the major banks, slashing its five-year fixed home loan rate by 25 basis points to 4.69%.
With ME Bank’s three-year rate also sitting at 4.59%, the non-major says it is now offering the lowest three and five-year fixed home loan rates in the market.
ME Bank CEO Jamie McPhee said the bank was able to reduce the rate as a direct result of cheaper funding costs – which the major banks won’t do.
“The cost at which ME Bank borrows in the fixed rate market has been falling. In turn, we can pass on these savings to customers,” he said.
“Unlike the majors, we’re keen to pass these opportunities on to customers and continue our aggressive position in the home loan market.”
According to APRA statistics, ME Bank boosted investor lending by 39.1% and its owner-occupied lending by 11.5% during the 12 months to 30 November 2014.
“As well as competitive rates, our recent growth will be assisted by the Bank’s recent decision to extend home loan offers to all borrowers, both members and non-members of Industry Super Funds and unions,” said McPhee.