ME Bank Loan Guide

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ME Bank is a digital bank with ATMs but no storefronts. Over 420,000 customers use it for banking, savings, or home loans. ME customers have their savings protected, thanks to a deposit guarantee in place from the Australian Government.

ME Bank is a digital bank with ATMs but no storefronts. Over 420,000 customers use it for banking, savings, or home loans. ME customers have their savings protected, thanks to a deposit guarantee in place from the Australian Government.

ME has also developed Ed, a free online financial school to help Australians better manage their funds. ME Bank is involved with raising money for breast cancer research, and to date has raised over $970,000. The bank has also declared that it will not invest in fossil fuels.

ME has also developed Ed, a free online financial school to help Australians better manage their funds. ME Bank is involved with raising money for breast cancer research, and to date has raised over $970,000. The bank has also declared that it will not invest in fossil fuels.

Awards

ME bank has won a number of awards in both its banking and lending sectors, including:


2018: Australia’s Best Bank, Mozo Experts Choice Australia’s Best Awards


2018: Best Everyday Account, Money Magazine’s ‘Best of the Best’ Awards


2016: Australia’s Best Bank, Mozo’s 2016 Experts Choice Awards


2016: Australia’s Best Bank, Mozo’s 2016 Experts Choice Awards


2015: Cheapest Three-Year Fixed Home Loan, Bank Category, Money Magazine’s ‘Best of the Best’ Awards.


2014 CANSTAR Award Gold Medal – Outstanding Value Home Loan


2014 Australian Lending Awards – Best Customer Experience

2017: ME Bank in Numbers

ME offers several different loan options that can be tailored to fit your borrowing needs.

Basic Home Loan

The basic home loan is a simple home loan with pared down features. It offers a single variable rate, with no split or fixed rate options. Offset accounts are not available with a Basic loan. Other features include:

  • Free redraw facility if you are ahead on payments (minimum $500 redraw)
  • Pay off your loan early
  • No application fees
  • No monthly account-keeping fees
Flexible Home Loan

The flexible home loan can suit a range of borrowers, from first home buyers to investors. The flexible loan offers the features of a basic loan with some additions, including:

  • 100% offset account
  • Option to pause repayments
  • Choose from a variable, fixed, or split loan
Flexible Home Loan + Member Package

For $395 per year you can add a member package to your flexible loan, which can reduce your interest rate and save you a bundle on fees.

  • Save up to 1.20% per year on variable interest rate
  • No valuation fee (save $200)
  • No solicitor fee (save $200)
  • No fee to fix the rate after you settle (save $250)
  • No fee to split the loan after you settle (save $250)
  • No top-up fee (save $250)
Construction Loan

ME Bank also provides construction loans for borrowers wishing to build their own home. Borrowers will need to have a minimum deposit of 20% of the property’s projected value. Progress payments are paid to the builder as building stages are complete, and the loan is interest-only until it is fully drawn down.

ME Bank has a comprehensive suite of features across its home loans. These include:

  • Ability to borrow up to 95% of the property value with the Basic and Flexible home loans (Lenders Mortgage Insurance may apply)
  • Unlimited extra repayments with no penalty
  • 30-year loan terms
  • Minimum loan of $40,000
  • Repayment options of weekly, fortnightly, or monthly
  • Fee-free redraw facility
  • 100% offset account with flexible loan
  • Prepay up to $30,000 on a fixed loan
  • Variable, split, and fixed rate options on flexible loans

ME Bank offers interest-only and principal + interest loans with the basic and the flexible loan options. Pay interest-only for up to 5 years as an owner-occupier or up to 10 years as an investor.

With the flexible home loan, you can also do a fixed-rate or split rate home loan from 1 to 7 years. The length of time you fix your loan will affect the interest rate offered.

As ME is an online bank, there are no branches where you can apply. However, ME has a team of over 50 mobile lenders who specialise in home loans and can meet you in person. To apply for a home loan with ME, you can:

  • Arrange for a face-to-face meeting with a mobile home loan specialist at a location convenient to you.
  • Call ME Bank to apply for a loan over the phone
  • Use the online form to request a call back from ME Bank

The ME home loan application form is available for download online.

Yes. If you have made extra repayments on your loan, you can redraw a minimum of $500 at a time. There is no fee to redraw and you can do it as frequently as you wish.

You can redraw using internet banking by following these steps:

  1. Log into ME internet banking
  2. Select ‘pay and transfer’ in the top menu, then ‘transfer between accounts’
  3. Select the loan you’re redrawing from and the account you’re moving the money to.
  4. Enter the amount you wish to redraw
  5. Select ‘continue’ then confirm your redraw

Yes. However, the amount of extra repayments you can make depends on the type of interest rate you have.

  • Variable rate loans: unlimited extra repayments with no penalty.
  • Fixed rate loans: up to $30,000 in extra repayments during the fixed rate period. Payments above $30,000 will be charged a fee.

Repayments can be made by transferring the money from a nominated account to your ME home loan account.

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