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Bank hikes variable home loan rates

A leading non-major lender has today announced a range of rate increases across its mortgage products for both owner-occupiers and investors.

ME today confirmed that the bank has increased rates for new ‘owner-occupier’ Flexible Member Package home loans and some ‘owner-occupier’/‘investor’ fixed rate home loans, by between 0.05 per cent and 0.15 per cent.

ME head of home loans, Patrick Nolan, said the increases were based on increasing swap rates – up 40 basis points since 31 August – and the increasing cost of deposit funding, noting ME is moving to the Liquidity Coverage Ratio (LCR) on 1 January 2017.

“Despite the increases, ME’s variable and fixed rates are some of the lowest in the market across both owner occupier and investor loans,” he said.

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ME rate changes effective 23 November 2016

Product

Current rate

Discount change

New rate

Owner Occupier Home Loans

Flexible Member Package
LVR 80% or Less, Loan Amount $400-$700K

3.79%

0.05%

3.84%

Flexible Member Package
LVR 80% or Less, Loan Amount $700K or more

3.69%

0.10%

3.79%

2 Year Fixed Rate

3.69%

0.15%

3.84%

3 Year Fixed Rate

3.69%

0.15%

3.84%

Investor Home Loans

3 Year Fixed Rate

3.89%

0.10%

3.99%

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