How Macquarie’s latest fixed-rate cuts stack up
For borrowers looking to lock-in a low home loan rate, Macquarie has just shaken up the game.
Macquarie cut fixed interest rates across the board last week in a move that positions the bank as a rate-leader on 2 to 5-year terms for owner-occupiers with a 30% deposit or refinancers looking to get ahead of falling rates.
The bank has narrowly missed out on offering the lowest fixed interest rates across all term lengths by a paper-thin margin. Macquarie’s 1-year rate is just 0.01% higher than The Capricornian’s leading rate of 5.74% p.a. – but with a far less appealing 7.31% p.a. comparison rate*.
Macquarie Basic Home Loan Fixed Rates
- 1-year: 5.75% p.a. (6.12% p.a. comparison rate*)
- 2-year: 5.39% p.a. (6.02% p.a. comparison rate*)
- 3-year: 5.39% p.a. (5.95% p.a. comparison rate*)
- 4-year: 5.39% p.a. (5.89% p.a. comparison rate*)
- 5-year: 5.39% p.a. (5.84% p.a. comparison rate*).
Source: Mozo database, 9 October 2024. Interest rates based on a $400,000 owner-occupied home loan for a borrower making principal and interest repayments, with <70% LVR.
Macquarie is ahead of the cash rate curve
According to Mozo finance expert, Rachel Wastell, the move from Macquarie preempts future rate cuts and offers eligible borrowers a way out of Australia’s current high-interest rate climate.
“With the RBA cash rate sitting at 4.35%, it would take almost four [Reserve Bank of Australia] rate cuts to match Macquarie’s lowest fixed rates.
“So, Macquarie’s competitive cuts are way ahead of the curve, offering some of the most attractive long-term certainty we’ve seen in a while,” said Wastell.
Macquarie Basic Fixed Home Loan
- Competitive 2 year fixed rate of 5.39% p.a (6.02% p.a. comparison rate*) for live-in borrowers with a 70% LVR
- No annual or application fee
- Fast turnaround times
The key essentials of a great value home loan are low rates and low fees, and the Macquarie Fixed Basic home loan has both. For owner-occupiers, you’ll have a range of fixed terms to choose from 1 to 5 years and interest rates are scaled depending on your loan to value ratio. The 2 year rate is a low 5.39% p.a. (6.02% p.a. comparison rate*) for borrowers with at least 30% deposit or equity. The loan also does away with common fees so you won’t pay an application, monthly or an annual loan fee (but there are break cost fees if you do need to exit the loan early). You can make up to $10,000 a year in extra repayments and access them via a redraw. There is also a split loan option but no offset account. The loan is 100% digital and Macquarie boasts market-leading turnaround times and a straightforward application.
Where do I get it? Head over to Macquarie to find out more >>
But should you fix your home loan now?
With the possibility of interest rates coming down sometime between December 2024 and early 2025, it’s hard to definitively say if it’s a good time to lock in your rate – even if Macquarie’s lowest fixed rate is around four cash rate cuts ahead of the game.
Wastell says borrowers might consider a split rate home loan, where a portion of your loan is charged a fixed interest rate, while the other portion could benefit from falling variable rates.
But those who are looking to save on their mortgage could benefit significantly by finding a lower interest rate. Compare home loans today to see if you can switch and save.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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