ME Bank bucks the trend of rate cuts
Members Equity Bank has gone against the trend of passing on the full 1.00 per cent cut in mortgage rates, by only offering a 0.75 per cent reduction to its home loan customers.
Effective from 15th February, the standard variable rate will be reduced from 6.24 per cent to 5.49 per cent.
There were no further details in the media announcement on the ME Bank website outlining reasons why the full rate cut was not passed on to their customers.
Based on the last media release from the December rate cut where the full rate reduction was passed on, Tony Beck, Head of Corporate Affairs, said “competitive pressures were fundamental in determining the extent of the RBA cut that could be passed on to the borrowers”.
A total of 4.00 per cent has been shed from the cash rate since the RBA started cutting rates last September. Members Equity Bank mortgage holders will have received a total of 3.55 per cent in reductions, while the Big 4 Banks have passed on an average of 3.78 per cent to their standard variable mortgages.
Source: Members Equity Bank