ME Bank home loans

ME Bank offers home loans that may be appropriate for first home buyers, refinancers, property investors and more. ME Bank’s range of home loan offerings is relatively stripped back, and they don’t offer construction or bridging loans, unlike many other home lenders.

However, when it comes to what types of borrowers ME Bank lends to, there are a few points that prospective borrowers should keep in mind.

The first is that ME Bank has a maximum allowed loan-to-value ratio (LVR) of 95%, meaning you won’t be approved for a home loan with ME Bank if your saved deposit is less than 5% of your total proposed loan size.

ME Bank also likely won’t give you a home loan if you can’t repay your proposed home loan at a rate 3% higher than the advertised interest rate. This is because the Australian Prudential Regulation Authority (APRA) requires all lenders to assess an applicant’s ability to service their proposed home loan in the event of interest rate hikes.

Yes, ME Bank provides home loans to first home buyers. While they don’t have a specific home loan product designed for these buyers, they have several tools and resources available to them to help them navigate the process of buying a home for the first time.

No, ME Bank is not one of the 33 participating lenders chosen by the Federal Government to offer the Home Guarantee Scheme. With that in mind, if you were hoping to access the Home Guarantee Scheme you may want to work with a different lender.

The Home Guarantee Scheme helps certain home buyers secure a home loan with a deposit smaller than 20%, without having to pay lenders mortgage insurance (LMI).

The Home Guarantee Scheme is made up of three separate initiatives:

• The First Home Guarantee, which allows eligible first home buyers to purchase a home with a deposit of as little as five percent.
• The Family Home Guarantee, which allows eligible single parents to purchase a home with a deposit of as little as two percent, regardless of whether they’re a first home buyer or not.
• The Regional First Home Buyer Guarantee, which allows eligible first home buyers to purchase homes in regional areas with a deposit of as little as five percent.

Applications for one of these schemes can only be made through a participating lender or a mortgage broker acting as an authorised representative of a participating lender.

Yes, you can refinance your home loan with ME Bank. Borrowers refinancing their loan with ME Bank can choose either a fixed, standard variable rate or split rate loan to switch to and can add an offset account to eligible loans (all ME Bank home loans come with fee-free redraw).

ME Bank requires a borrower to take out LMI if their deposit represents less than 20% of the loan value. ME Bank allows a maximum LVR of 95%, meaning if you don’t have at least a 5% deposit, paying LMI to secure a home loan likely won’t be an option.

As of 15 May 2024, ME Bank charges the following home loan fees. Please note that these fees are subject to change without notice; be sure to check the Key Facts Sheet for any home loan you’re thinking about applying for.

• Valuation fee – $200
• Settlement fee – $250
• Agent fee – $110
• Member Package fee – $395
• Fixed rate lock fee – $500
• Top-up fee – $250
• Security substitution fee – $350
• Missed repayment fee – $25
• Security discharge preparation fee – $350