Home loans through ME Bank - query for those who use them

Geewhizz on 07/10/2012 - 08:38

We recently took on a variable rate home loan through ME Bank. During the approval process the reserve bank dropped interest rates by a total of .75 per cent, yet the ME rate did not change. With the further decrease last week, the difference is a full 1 percent. When we originally submitted the application the Members Package rate of 6.08% was amongst the best going, but it's currently looking pretty mediocre.

Do they tend to drop interest rates automatically, or do you need to hassle them every time the RBA does anything?

Sorry if this sounds like a daft question, but we're home loan newbs and don't really have much idea of the ins and outs of it all.

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Comments

  • cuteduck on 07/10/2012 - 12:50

    My suggestion is always go for big banks… As they are pressured by media, politicians etc if not passing the cut. You can get up to 1% with big banks.. Much competitive than ME Bank

  • BetterValue on 07/10/2012 - 23:13

    I'm with them and they do keep a fairly low rate. From what I've seen so far they do drop their rates pretty soon after the rba.

  • 1bug on 08/10/2012 - 01:04

    "Do they tend to drop interest rates automatically, or do you need to hassle them every time the RBA does anything?"

    The Member Package Variable Rate is still 6.08% for new customers, so they haven't changed it. They haven't reduced it because they're probably trying to increase their profit margin (like the big banks) and they think that they're still competitive. If/when they decide to change it, they will update their website…
    http://mebank.com.au/rates_and_fees/home_loans.html

    To answer your question, you DON'T need to hassle them. Because it's a variable rate, when they DO change it, everybody on that Package gets the new rate. If however, they introduce a new package with a lower rate, then you may be able to switch to the new package (subject to any transfer/penalty fees).

  • Geewhizz on 08/10/2012 - 07:39

    Cool! Thanks for that! :)

  • iseenya on 08/10/2012 - 12:40

    The following is from the MEB log-in page today:
    CUSTOMER NOTICE

    Dear Customers,
    ME Bank has today announced it will be reducing its standard variable home loan rates by 0.20%p.a effective 12 October 2012.
    The Super Member Standard Home Loan now drops from 6.28% p.a. to 6.08% p.a. (comparison rate of 6.10% p.a.), providing industry super fund and union members with a lower standard variable rate than those of the major banks.
    The award-winning Member Package with SHML Ultimate Offset variable rate now drops from 6.08% p.a. to 5.88% p.a. (comparison rate of 5.88% p.a    .), continuing to be one of the best home loan packages in the market for customers borrowing up to $500,000.

    ME Bank is also helping more Australians save by continuing to provide leading term deposit rates, including the 3 month Super Members Term Deposit rate at 5.01% p.a.

    The rate cuts ensure members of industry super funds and unions will still receive one of the most competitive standard variable home loan rates on the market – currently 0.50% p.a. lower than that of the nearest major bank – combined with lower and fewer fees and better service.

    • Geewhizz on 09/10/2012 - 07:55

      Awesome - thanks. It's about time. 0.2% out of a total decrease of 1% in recent months is certainly better than nothing. :)

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