ME Bank lowers standard variable rate to 6.44%p.a.
9 May 2012, 12:05pm
ME Bank has today announced that it will cut its variable mortgage rates by 30 basis points following the RBA’s decision to lower the official cash rate to 3.75%.
The rate cut ensures members of industry super fund and unions will still receive one of the most competitive rates on the market – currently more than 50 basis points lower than that of the nearest major bank – combined with lower fees and quality service.
ME Bank Super Members
ANZ Standard Variable
Rate Home Loan
Westpac Rocket Repay Home
NAB Tailored Variable
Rate Home Loan
CommBank Variable Rate
Standard Variable Rate (as at 1pm 7/5/12)
The needs of deposit customers have also been considered with the 6 month
Super Members Term Deposit now one of the leading rates at 5.65%p.a., the First
Home Saver Account now at 4.60%p.a. and our combined savings and transaction
account, InterestME Account at 3.00%p.a. for balances over $3000.
The continuing pressure of increased funding costs has meant ME Bank has been
unable to pass on the full reduction in the RBA cash rate this month. “We have
been steadfast in keeping the full financial burden of increased funding costs
off customers for as long as possible,” said ME Bank CEO, Jamie McPhee.
“Over the last 18 months we have reduced our rates more than the major banks.
Between November 2010 and May 2012, the major banks reduced their rates on
average by 0.34%p.a. or less (excluding ANZ, yet to announce), while ME Bank
delivered 0.55%p.a. in rate cuts,” said Mr McPhee.
“This has cost major bank customers with an average loan of $300,000 up to
$70 per month, which over the life of their loan can add up to $21,000,” he
A snapshot of rate moves since November 2010 also helps highlight the unfair
treatment of customers by the majors over the long term:
In November 2010 the major banks all increased their rates more than the
RBA official rate rise, whilst ME Bank kept rates steady;
In November and December 2011 ME Bank once again delivered rate cuts in
full to customers whilst some banks did not; and
In February, March and April of this year, ME Bank kept rates steady
whilst the major banks and some of the smaller lenders increased rates and
many announced off-shoring of jobs to protect profits.
“Every month since we became a bank in 2001, ME Bank has provided industry
super fund and union members with standard variable mortgage rates lower than
those of the major banks. This has not been a short term pledge,” added Mr
The Super Member Home Loan standard variable rate now drops from 6.74%p.a. to
6.44%p.a., providing industry super fund and union members with a lower standard
variable rate than those of the major banks.
The Member Package variable rate now drops from 6.49%p.a. to 6.19%p.a.,
making it one of the best home loan packages in the market for customers
borrowing up to $500,000.
The 3 year fixed rate on the Super Member Home Loan has been reduced to
ME Bank is the only bank in Australia which is 100 percent owned by
Australia’s leading industry super funds. ME Bank provides industry super fund,
union and employer association members with a genuinely fairer banking
alternative. For more information on ME Bank– please visit