Both a non-major and a neobank have announced interest rate adjustments as they look to better accommodate their customers in the current lending landscape.
Following input borrowers are wanting low fixed rates for shorter periods, ME Bank has reduced its fixed rates for owner occupiers paying P&I with at least a 10% deposit through executing rate cuts of up to 40 basis points across its one to three year terms.
“Many customers are looking for the increased certainty of a low fixed rate, but for shorter periods. This new offer is designed to give them the right mix of certainty and flexibility at one of the lowest rates currently in the market, for the length of time that best suits them,” said ME general manager of home lending Andrew Bartolo.
“This offer will help first home buyers achieve their dream of home ownership faster by only requiring a 10% deposit (with LMI), put more money back in their pockets through a lower rate, and give them peace of mind with certainty on exactly what their repayments will be a year or more in advance.”
The bank’s most competitive owner occupier fixed rate now rests at a flat 2.19%p.a., regardless of whether the customer locks in for one, two or three years.
Neobank 86 400 also last week unveiled changes to its interest rates through the restructuring of the pricing for its Own home loan.
The group introduced tiered rates for all variable customers, new and existing, in order that those with a lower LVR could access a better rate.
"We built 86 400 to help Australians take control of their money. By reducing the variable loan rates for customers with more equity in their property, we are helping our customers do more with their money,” said Melissa Christy, 86 400 lending product lead.
There are three tiers under the new system: below 80%, below 70%, and below 60%. The group’s current variable rates now start from 2.59% p.a. for owner-occupied customers paying P&I with an LVR of 60% and below.