home loan FAQs.

Am I eligible to apply for a Home Loan with ME?

Home Loan applicants must be:

  • 18+ years of age

  • Be a citizen or permanent resident of Australia or New Zealand

How are interest rates set?

There are a range of factors banks consider when setting their lending rates.

One of the most influential of these is the ‘cash-rate’, which is set by the Reserve Bank of Australia (RBA). Part of the RBA’s role is to control inflation, economic growth and employment, and it does this by setting the ‘official cash rate’, which is the interest rate Australian banks are required to pay the RBA for short-term loans. When the RBA increases or decreases the ‘cash-rate’, retail banks typically pass this on to customers in the form of higher or lower lending rates.

Other factors include the interest rate banks pay savers for deposits and the amount they pay overseas and other financial institutions to borrow money. One final factor is profit motive. While many of the big banks are run purely to make profits for shareholders, other banks like ME are set up to more fairly balance the demand for profit with the demand from customers for lower-cost products.


Is my property suitable security for a home loan?

All residential properties must be deemed suitable by an approved valuer (appointed by ME). We can arrange this for you. Properties under qualified title or old law may involve additional costs (i.e. conversion to Torrens title).

ME cannot provide finance for all types of residential properties. To check whether your property is suitable security, contact one of our lending consultants on 13 15 63.

How much can I borrow?

You may borrow up to 95% of the purchase price or ME’s valuation of the property - whichever is less. Minimum loan amounts start from $40,000 ($20,000 in Tasmania) and are subject to credit approval.

However, we don't want you to commit to something that could make your situation untenable, so the amount of your loan will depend on your income, financial commitments and ability to repay the loan – our borrowing power calculator can give you an idea of how much you could borrow.

Please note restrictions apply to amounts lent for some properties.


What are the loan terms for ME home loans?

You can set up a loan for any period from 5 years up to 30 years. Over that period, your repayments are calculated so that you meet your monthly interest payment, as well as reduce the principal amount outstanding.

How can I make my loan repayments?

Your loan repayments must be made by direct debit from a nominated account. This account can be held with either ME or any other Australian financial institution.

To set up a direct debit you can download and print the direct debit form and return it by mail to the address shown.

The Basic Home Loan and Flexible Home Loan enable you to make your repayments by salary credit or direct credit. Just remember to make sure you increase your salary credit/ direct credit repayment amount if interest rates increase, but don’t worry as we’ll let you know when you need to.

Can I make extra repayments?

If you choose a variable interest rate, you can elect to make lump sum payments or extra repayments at any time.

If you have a fixed interest rate facility (including as part of a split loan) settled on or after 9 June 2014, you may elect to make lump sum payments or extra repayments at any time into the fixed interest rate facility up to $30,000 during the fixed interest rate period. Note that you are not able to redraw from a fixed interest rate facility during the fixed rate period. However at the end of the fixed interest rate period, the facility becomes a variable rate facility and the prepaid amount will be available for redraw.

Are there any fees if I repay my loan early?

For variable rate loans, there are no additional charges for repaying the loan early. 

For fixed interest rate loans that are repaid before the end of the fixed interest rate period, there may be a prepayment fee if ME incurs a loss from the termination. In this situation, the fee will not be greater than the loss incurred by ME.


What are the costs?

To make life easier for everyone, ME charges no application fees for home loans. However, some solicitor's fees, valuation fees and agent fees apply. For information on these fees and when they are charged, please see the relevant home loan product page.

Lenders Mortgage Insurance: Lenders mortgage insurance (LMI) is payable by you when the loan amount is greater than 80% of the property’s value. Our consultants can assist you to calculate this premium.

Property Insurance: Before settlement, you will need to arrange general purpose property insurance. Once your property has been valued, we'll let you know the minimum insurance coverage required.

Other: When purchasing a property, you may incur external costs and charges, such as legal advice, stamp duty and statutory government fees and charges.

If you would like some assistance in calculating these costs, contact one of our lending consultants on 13 15 63

Can I top up my home loan?

You can apply to top up your home loan. The minimum amount you can apply for is $20,000.

To qualify for a top up you’ll need to have enough equity in your property. You are likely to have equity because the value of your property has risen.

How does topping up my home loan work?

If you need extra money – for things like renovating your home, buying a car or paying off debts – instead of taking out a separate loan, you can use the equity you’ve built up to increase your existing home loan.

This can be a cost-effective way to borrow extra cash, since you’ll generally get a lower interest rate than you’d get from other lending options.

There's a $250 fee to apply for a top up, this is waived if you have a Member Package.

To top up your home loan apply using the Home Loan Top Up form, or if you have questions about the application form call us on 13 15 63.

How do I close my home loan account?

We can help you with the next steps, and talk you through your options. Call us on 03 9708 4041 from 8.30am to 6pm Monday to Friday or 9am to 5pm Saturday (AEST/AEDT).

What is my BSB number?

At ME, we use two BSB numbers for our home loans.

944 600 - This BSB applies to our Basic Home Loan and Flexible Home Loan.

944 300 - This BSB applies to our Standard Home Loan, Ultimate Offset Account and Interest Only Investment Loan."