Macquaire, BoQ, & ME Bank make major home loan rate moves

There was plenty of action on the home loan market this week, including in the variable rate space - a segment that had previously been notably quiet.

Interestingly, the moves came amid fresh data dampening hopes of a 2024 cash rate cut.

The latest figures show the job market remains resilient, with the unemployment rate holding steady at 4.1% in September, despite the high interest rate environment.

For those unaware, unemployment and inflation typically move in opposite directions - when one falls, the other generally rises.

So, a steady unemployment read might suggest inflation has also dug in its heels, but that's not necessarily the case.

CommBank head of Australian economics Gareth Aird noted the data reduces the likelihood the Reserve Bank of Australia (RBA) will cut the cash rate in December, but it's sticking to its forecast for a December cut while it waits for further data to be released.

The three remaining big four banks believe a February cut is more likely.

Given this backdrop, it might seem strange for some lenders to slash variable rates and others to raise fixed rates, but that's exactly what happened this week. Here are the details:

Macquarie Bank hikes fixed rates by up to 30 basis points

In a surprising move, Macquarie Bank raised fixed rates on many of its home loan products, just weeks after cutting them. The once near-market-leading three-year fixed rate of 5.39% p.a. for owner-occupiers has now jumped by 30 basis points.

Notable changes for owner-occupiers include:

• One-year fixed rate: Increased by 10 basis points across all loan-to-value ratios (LVR), with the new rates ranging from 5.85% to 6.19%.
• Two- to five-year fixed rates: All saw a 30-basis-point rise, pushing the most competitive new rate to 5.69% for borrowers with LVRs below 70%.

Here's a breakdown of the updated rates for Macquarie's fixed-rate home loans:

Fixed rate period	LVR	Change	New rate	Comparison rate*
One year	<70%	+10bp	5.85%	6.14%
	70-80%	+10bp	5.95%	6.19%
	80-95%	+10bp	6.19%	7.11%
Two years	<70%	+30bp	5.69%	6.08%
	70-80%	+30bp	5.79%	6.14%
	80-95%	+30bp	6.29%	7.03%
Three years	<70%	+30bp	5.69%	6.04%
	70-80%	+30bp	5.79%	6.10%
	80-95%	+30bp	6.29%	6.95%
Four years	<70%	+30bp	5.69%	6.00%
	70-80%	+30bp	5.79%	6.07%
	80-95%	+30bp	6.29%	6.88%
Five years	<70%	+30bp	5.69%	5.97%
	70-80%	+30bp	5.79%	6.04%
	80-95%	+30bp	6.29%	6.81%

BoQ & ME slash variable rates on investment home loans

On the other hand, property investors received good news from Bank of Queensland (BoQ) and ME Bank, which both announced variable rate cuts.

BoQ's variable rate cuts reached up to 20 basis points. Meanwhile, ME Bank slashed some rates by over 1%, with its Basic Home Loan range perhaps more likely to catch the eye of property investors.

BoQ's notable rate changes include:

Product	Interest type	LVR	Change	New rate	Comparison rate*
Investor Economy home loan (New to bank customers only)	IO	≤70%	-5bp	6.44%	6.53%
		70-80%	-5bp	6.49%	6.58%
		>90%	-15bp	6.74%	6.69%
	P&I	80-90%	-5bp	6.54%	6.68%

For ME Bank's Basic Home Loan, the standout changes are:

Product	Interest type	LVR	Change	New rate	Comparison rate*
Investor Basic home loan	IO	<80%	-55bp	6.39%	6.33%
		>80%	-15bp	6.74%	6.65%
	P&I	<80%	-35bp	6.24%	6.26%
		>80%	-5bp	6.54%	6.56%

Newcastle Permanent & Hume Bank cut variable rates to 5.99% p.a.

Smaller players Newcastle Permanent and Hume Bank also came out swinging this week by cutting their variable rates to below the coveted 6% mark.

Newcastle Permanent's special offer rate on its Real Deal home loan for owner-occupiers borrowing $150,000 or more with an LVR under 80% now sits at 5.99% p.a.

Meanwhile, Hume Bank's liteBlue range dropped rates by up to 35 basis points. Borrowers won't get an offset account with this no-fee product.

Key rate changes from Newcastle Permanent for owner-occupiers are as follows:

Product	LVR	Change	Min Rate	Comparison rate*
Real Deal Special offer	<80%	-5bp	5.99%	6.03%
Real Deal Special offer	<95%	-5bp	6.74%	6.78%

Here are some notable new rates for owner-occupiers from Hume Bank:

Product	LVR	Change	New rate	Comparison rate*
liteBlue	≤60%	-15bp	5.99%	6.00%
	60-80%	-15bp	6.09%	6.10%
	80-90%	-20bp	6.29%	6.30%
	90-95%	-30bp	6.69%	6.70%

Police Credit Union unveils 5.39% p.a. home loan interest rate

Finally, while Macquarie Bank hiked fixed rates, Police Credit Union took the opposite route and now offers some of the most competitive fixed rates in the market.

For owner-occupiers and investors alike, the bank has unveiled a three-year fixed rate of 5.39% p.a., available to borrowers with a 20% deposit or more.

Here are the details:

Product	Borrower	Change	New rate	Comparison rate*
Three year fixed rate (Special offer)	Owner-occupier	-10bp	5.39%	6.59%
	Investor	-20bp	5.39%	6.59%

Other movers

• Unity Bank cuts fixed rate home loan rates by up to 50 basis points
• Community First Bank drops fixed rates by as much as 20 basis points
• Bank of China lowers fixed and variable home loan rates by up to 20 basis points
• GMCU cuts fixed mortgage rates by as much as 15 basis points
• Athena drops fixed rates by up to 85 basis points
• Summerland Bank cuts fixed rates by as much as 25 basis points 
• IMB drops select fixed and variable rates by up to 20 basis points
• Bank First lowers fixed and variable rates by up to 44 basis points 

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