Macquarie, BOQ & MOVE Bank slash home loan interest rates

What the lenders shifting home loan interest rates lacked in volume this week, they made up for in significance.

Macquarie Bank, Bank of Queensland (BOQ), and MOVE Bank slashed mortgage rates amid the continuous flow of data suggesting that borrowers' pain could soon be easing.

While the Reserve Bank of Australia (RBA) likely won't rush to cut the cash rate on the back of the latest wage growth and unemployment figures, things appear to be heading in the right direction.

Wages rose 0.8% over the June quarter, in line with expectations, while the latest unemployment rate came in higher than most experts had forecast.

In fact, at 4.2%, the unemployment rate is at a nearly three-year high.

For those unaware, the RBA has hiked the cash rate 13 times since mid-2022 in a bid to tame runaway inflation, and typically, inflation and unemployment move in opposite directions.

Thus, a rising unemployment rate is good news for those hoping inflation – and therefore interest rates – will soon drop.

So, with all that considered, let's dive into the mortgage maestros making home loan interest rate moves this week.

Macquarie Bank slashes fixed rates by up to 76 basis points

Both owner-occupiers and investors can benefit from the newly-dropped rates on offer by one of Australia's largest banking brands: Macquarie.

It's not a common instance in which a bigger bank can boast on the market's lowest home loan interest rates, but it's one that unfolded this week when the bank unveiled new rates on its Basic home loan for those agreeing to two-, three-, and four-year fixed rate periods.

For owner-occupiers with loan-to-value ratios (LVRs) of 70% or less, the bank's new fixed rate of 5.79% p.a. might be enticing (comparison rates* vary from 6.04% p.a. to 6.10% p.a., depending on length of fixed rate period).

For investors, the new 5.99% p.a. interest rate promised to those with a deposit of at least 30% who sign onto a two-, three-, or four-year fixed rate period is likely is likely to grab attention (comparison rates* vary from 6.24% p.a. to 6.30% p.a., depending on length of fixed rate period).

BOQ drops fixed home loan interest rates by up to 50 basis points

Not to be outdone, BOQ joined in on the fixed rate cutting action this week.

It slashed the discounted rate on its Fixed Rate Home Loan to as low as an eye catching 5.74% p.a. for those agreeing to fix their rate for three years.

The discounted rates promise a 35 basis point discount on the bank's also-lowered standard residential fixed rate for new-to-bank borrowers.

The full suite of changes made to BOQ's discounted fixed rates for owner-occupiers are as follows:

Product name	LVR	Change	New rate (p.a.)	Comparison rate* (p.a.)
Residential Fixed - Two years Discount rate	≤90%	-50bp	5.79%	6.39%
Residential Fixed - Three years Discount Rate	≤90%	-45bp	5.74%	6.33%
Residential Fixed - Four years Discount Rate	≤90%	-30bp	6.14%	6.42%
Residential Fixed - Five years Discount Rate	≤90%	-40bp	6.14%	6.40%

Meanwhile, investors making either principal and interest or interest only repayments might be eligible for these discounted fixed home loan rates, which were also dropped this week:

Product name	LVR	Change	New rate (p.a.)	Comparison rate* (p.a.)
Investment Fixed - Two years Discount rate	≤90%	-45bp	5.99%	6.59%
Investment Fixed - Three years Discount rate	≤90%	-40bp	5.94%	6.53%
Investment Fixed - Four years Discount Rate	≤90%	-30bp	6.29%	6.60%
Investment Fixed - Five years Discount Rate	≤90%	-40bp	6.29%	6.58%

MOVE Bank cuts fixed & variable rates by as much as 30 basis points

The smaller mutual bank MOVE also cut home loan interest rates this week, slashing up to 30 basis points from many of its fixed and variable rate offerings.

The bank now offers a rate of 5.99% p.a. on its Everyday Home Loan when owner-occupiers or investors fix their rate for one year.

That's even lower, at 5.84% p.a., for those who fix for three years.

Meanwhile, changes to its variable rates for owner-occupiers making principal and interest repayments included:

Product name	LVR	Change	New rate (p.a.)	Comparison rate* (p.a.)
Everyday Home Loan	≤80%	-10bp	5.99%	6.04%
Everyday Home Loan	80-90%	-10bp	6.14%	6.19%
Everyday Home Loan	≥90%	-10bp	6.29%	6.34%
Offset Home Loan	≤80%	-10bp	6.19%	6.24%
Offset Home Loan	80-90%	-10bp	6.34%	6.39%
Offset Home Loan	≥90%	-10bp	6.49%	6.54%

Investors, on the other hand, might make the most of these new variable rates for those making principal and interest repayments:

Product name	LVR	Change	New rate (p.a.)	Comparison rate* (p.a.)
Investment Everyday Home Loan	≤80%	-15bp	6.14%	6.19%
Investment Everyday Home Loan	≥80%	-15bp	6.29%	6.34%
Investment Offset Home Loan	≤80%	-15bp	6.34%	6.39%
Investment Offset Home Loan	≥80%	-15bp	6.49%	6.54%

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Important Information and Comparison Rate Warning

_{Image by Tina Dawson on Unsplash}