Macquarie's latest rate cuts place its home loan pricing below the big four banks, with its lowest fixed rate undercutting their most competitive offer by nearly 20 basis points.
The lowest mortgage rate currently advertised by any of the big four banks is 5.74% – offered by ANZ for owner-occupiers fixing their rate for two or three years.
Macquarie vs Big 4 Banks: Fixed rate comparison
Here's how Macquarie's newly-cut fixed rates compare to the lowest advertised by the big four banks:
| Bank & product | Lowest fixed rate |
Comp rate* |
Fixed period |
|---|---|---|---|
| CommBank Fixed Rate home loan with package |
5.89% | 7.80% | Three years |
| NAB NAB Tailored Home Loan |
5.89% | 6.62% | Three years |
| Westpac Fixed Options Home Loan with package |
5.89% | 7.08% - 7.45% |
Two to five years |
| ANZ Fixed Rate home loan |
5.74% | 6.81% - 6.94% |
Two or three years |
| Macquarie Basic Fixed home loan |
5.55% | 6.00% - 6.05% |
Two or three years |
For borrowers willing to explore beyond the major banks, there are even lower rates available at the time of writing.
Smaller, customer-owned banks such as BankVic, Australian Mutual Bank, and Community First Bank advertise two or three year fixed rates as low as 5.49% p.a. (comparison rates vary from 6.03% p.a. to 6.31% p.a.).
The six basis points of difference between 5.49% p.a. and 5.55% p.a. could result in an annual saving of $215 for a borrower with a $500,000 mortgage and a 25-year loan term.
This latest rate cut by Macquarie follows a series of apparently strategic moves.
The bank slashed its fixed rate lineup in August and again in early October – revealing rates as low as 5.39% p.a.
It then made a quick about-face and hiked rates by as much as 30 basis points in mid October.
Today's drop sees its advertised offerings once more among the market's most competitive.
Macquarie slashes fixed rates for owner-occupiers
The lowest rates in Macquarie's fixed rate lineup are advertised to owner-occupiers making principal and interest repayments.
The newly dropped interest rates for such are as follows:
| Fixed period |
Max LVR |
Change | New rate |
Comp rate* |
|---|---|---|---|---|
| One year |
70% | -16bp | 5.69% | 6.12% |
| 80% | -16bp | 5.79% | 6.17% | |
| 95% | -14bp | 6.05% | 7.09% | |
| Two years |
70% | -14bp | 5.55% | 6.05% |
| 80% | -14bp | 5.65% | 6.11% | |
| 95% | -14bp | 6.15% | 7.00% | |
| Three years |
70% | -14bp | 5.55% | 6.00% |
| 80% | -14bp | 5.65% | 6.06% | |
| 95% | -14bp | 6.15% | 6.91% |
Macquarie's new fixed rates for property investors
Meanwhile, property investors making principal and interest repayments could take advantage of these deals:
| Fixed period |
Max LVR |
Change | New rate |
Comp rate* |
|---|---|---|---|---|
| One year |
70% | -14bp | 5.85% | 6.31% |
| 80% | -14bp | 5.95% | 6.42% | |
| 90% | -14bp | 6.35% | 7.22% | |
| Two years |
70% | -16bp | 5.69% | 6.24% |
| 80% | -16bp | 5.79% | 6.34% | |
| 90% | -4bp | 6.15% | 7.08% | |
| Three years |
70% | -16bp | 5.69% | 6.18% |
| 80% | -16bp | 5.79% | 6.29% | |
| 90% | -4bp | 6.15% | 6.98% |
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.99% p.a. | 6.44% p.a. | $2,995 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure |
Image by Danausi~commonswiki on Wiki Commons
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