Despite the Reserve Bank of Australia holding off a rate adjustment this month, more lenders are joining the rate-cut bandwagon, with Bankwest, ME Bank, and UBank being the latest to make their move to keep up with their bigger rivals.

ME Bank and NAB-owned UBank both repriced their owner-occupier and investor home loans — the former slashed its variable and fixed interest rates by up to 26 basis points while the latter announced up to 30 basis-point rate reduction, according to a report in 10 Daily.

The most significant rate reductions from both lenders are for investor borrowers. ME Bank’s two-year fixed-rate principal-and-interest (P&I) investor home loan now bears a new rate of 3.88% while UBank’s five-year fixed-rate interest-only (I&O) investor home loan incurs a reduced rate of 4.39%

The table below shows the changes in ME Bank and UBank’s mortgage rates for owner-occupier and investor home loans.










ME Bank Rate Changes

Owner-occupier (P&I) offerings

New Rate

Variable Home Loan ($400-$700K)

3.79%


Three-Year Fixed-Rate (≤80% LVR)

3.58%

Investor (P&I) offerings

New Rate

Variable ($400-$700K) ≤80% LVR


4.17%

Two-year Fixed-Rate  ≤80% LVR

3.88%

 















UBank Rate Changes

Owner-occupier (P&I) offerings

New Rate

Three-Year Fixed-Rate

3.59%

Five-Year Fixed-Rate


3.94%

Investor (P&I) offerings

New Rate

One-Year Fixed-Rate

3.99%

Two-Year Fixed-Rate

3.99%

Three-Year Fixed-Rate

4.24%


Investor (I&O) offerings

New Rate

One-Year Fixed-Rate

4.14%

Two-Year Fixed-Rate

4.14%

Three-Year Fixed-Rate

4.39%

Perth-based Bankwest, a lender owned by Commonwealth Bank, also trimmed its fixed rates by up to 50 basis points, an AAP report said.

Its three-year owner-occupier principal-and-interest home loan now has a reduced mortgage rate of 3.48%, which, according to AAP, is the lowest in the market.

Bankwest also lowered the interest rate of its three-year investor home loan to 3.88%.



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