Members Equity Bank (ME Bank) mortgages are competitive and the bank uses a unique home loan application process. Although the bank is not as big as its competitors, ME Bank is known for offering a range of advantages to borrowers. For one, ME Bank’s superannuation funds offers a unique option for many Australians.
Even then, there are a few considerations you want to do before filing your home loan. Here are the pros and cons of getting your home loan with ME Bank.
ME Bank is smaller than other banks, which is both a good and a bad thing for them. They can compete with other bigger banks, all thanks to their superannuation fund. Their product marketing focuses mostly through mortgage brokers and the workplace.
With that said, their ME Bank mortgage has many excellent areas to consider. First, they have very low interest rates both on their variable and fixed home loans. This translates more long-term value for their clientele.
ME Bank also has delegated underwriting authority (DUA) with QBE. A DUA with QBE means they can be more flexible with their loans for up to 95% of loan value. They also have faster approval than many other banks.
What makes ME Bank home loans great, however, is how they work. Because they work closely with unions and brokers, they’re great for small to medium loan sizes.
A mortgage with ME Bank boils down to three of their home loan products. The first includes their basic, no-frills variable-rate home loan. It offers fee-free redraws and nothing a ton of other features.
The other choice is the flexible option, with no annual fee. However, many customers get the flexible + member package option.
With this, members pay an annual $349 membership fee to get super-low variable rates. Members also get steep discounts on other financial products and waived fees.
ME Bank is best if you’re looking for good fixed-rate home loans. They have no specialty home loans, and we don’t recommend their services for investors. First-time homebuyers and any complex loan will be problematic too.
So, what’s the common issue that clients find with ME Bank mortgages? For starters, their lending policy can get strict, especially for those with unusual employment. Self-employed clients will not get a lot of mileage from their packages.
ME Bank is also notorious for using credit scores when assessing home loans. This process results in zero flexibility with people who have bad credit scores. They also have a smaller team than most, which makes clients lose out on their target homes.
Should you get your mortgage with ME Bank? If you’re a first-time homebuyer or you have a complicated case, the answer is no. ME Bank is an excellent pick if you are looking to refinance, or you are in no rush with your loan.
Are you looking for a suitable bank mortgage? Check out our other home loan reviews and see which bank suits your needs.