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.

Fixed or variable? Macquarie breaks through home loan debate

Collage of a woman leaping while trailing a rainbow.

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.

Macquarie bank accounts get a hefty boost

Collage of a hand dropping coins into another.

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: Australia’s Best Bank

Collage of a woman star-jumping against a bursting rainbow background.

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:

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.

Compare low interest home loans - last updated 11 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.


* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.