Macquarie Bank cuts fixed rates on home loans and boosts savings in shock post-RBA move

Macquarie Bank broke headlines this week for becoming one of the first Australian banks to pounce on the 0.50% p.a. August RBA rate hike – beating out any of the Big Four.

However, the bank also paired its announcement with generous boosts to savings accounts and a deep cut to its fixed rate home loans, which could make Macquarie one of August’s most eye-catching providers.

Let’s dive in.

Variable rates have been rising for a while now thanks to movements in the official cash rate, causing much stress for borrowers. But fixed rates haven’t offered refuge either, since banks have largely priced future rate expectations into their offers. 

“Fixed rates are basically out of the market now,” says Mozo’s banking expert Peter Marshall.

“The big banks are certainly not trying to attract customers with their fixed rates, so they’re looking at what they can do to get people in the door and give them their loans.”

Now, most fixed rates for owner-occupiers making principal & interest repayments sit in the 4% - 7% range in the Mozo database. Meanwhile, the average variable rate for similar loans has shot up from 3.03% in April to 4.13% today.

The Reserve Bank hit the cash rate with another 0.50% p.a. rise this month, which Macquarie will pass along in full to variable mortgage holders from 12 August. But to soften the blow, the major bank will also slash fixed interest rates by up to 0.75% p.a., effective 5 August.

The new standard fixed term rates for owner occupied properties with an LVR up to 80% will be:

• 1-year: 4.55% p.a. (3.45% p.a. comparison rate*)
  
• 2-year: 5.15% p.a. (3.66% p.a. comparison rate*)
  
• 3-year: 5.35% p.a. (3.86% p.a. comparison rate*)
  
• 4-year: 5.39% p.a. (4.02% p.a. comparison rate*)
  
• 5-year: 5.45% p.a. (4.19% p.a. comparison rate*)
  

For perspective, the average fixed term rates for similar loans tracked in the Mozo database range from 4.84% for 1-year terms to 6.28% for 5-years. By comparison, Macquarie’s new rates are up to 0.83% cheaper.

Thankfully, Macquarie has also joined in on the term deposit war and saving rates scramble. As a rule of thumb, any interest rate over 2% raises brows of intrigue, and Macquarie has them in spades. 

From 12 August, the new interest rates for Macquarie’s deposits and bank accounts will be as follows for new and ongoing customers:

• Transaction account: 2.25% p.a. on balances up to $250,000
  
• Savings account: 2.25% p.a. on balances up to $250,000
  

According to Macquarie, its transaction and savings accounts have no special conditions, such as a minimum balance or deposit requirement, that customers must meet to earn the interest rates. Be sure to read the product disclosure statement carefully, however, before signing up to any new bank account. 

As for term deposits, Macquarie will offer a selection of handsome rates for relatively short terms from 4 August, including:

• 3-months at 2.35%
  
• 6-months at 2.70%
  
• 9-months at 3.00%
  
• 12-months at 3.30%
  

These rates apply to balances up to $1 million. While certainly not the best around (check out our term deposit roundup for some higher rates), they’re certainly incredibly competitive in today’s rapidly changing environment.

RELATED: What are the pros and cons of a term deposit?

Macquarie has been delivering excellence for a while, having won a whopping seven Mozo Experts Choice Awards across several different banking and savings categories in 2022, including Australia’s Best Bank. 

Its other recognitions include:

• Saving Accounts: Everyday & Savings Bank of the Year, Regular Saver, Kick Start Savings, No Strings Savings
  
• Bank Accounts: Exceptional Everyday Account
  
• Banking Apps & Tech: Internet Banking
  

Additionally, Macquarie’s packaged Offset Home Loan won a 2022 Mozo Experts Choice Home Loan Award, making it a particularly attractive offer for refinancers. 

But no matter if you’re seeking an edge on your savings or home loan, Macquarie reminded us this week why it’s one of the best options around.

Browse and compare low interest rate home loans below.