Macquarie cuts variable rate home loans a week from RBA

Woman gesturing to city window graphic, excited about variable home loan rate cuts

Macquarie has once more proved why its home loans remain some of the most competitive on the market – at least for home loan interest rates

The bank slashed variable interest rates on its Basic Home Loan by up to 21 basis points today. This brings its 80% owner-occupier tier to a variable rate of 6.19% p.a. (6.21% p.a. comparison rate*).

For comparison, the Mozo database average for similar home loans is 6.85% p.a. – 66 basis points higher. 

Macquarie Basic Home Loan new interest rate changes - 30 January 2024

LVR Tier
New interest rate
Mozo database average
Difference
< 60%
6.15% p.a. (6.17% p.a. comparison rate*)
6.77% p.a. 
62 bp
< 70%
6.15% p.a. (6.17% p.a. comparison rate*)
6.81% p.a.
66 bp
< 80%
6.19% p.a. (6.21% p.a. comparison rate*)
6.85% p.a.
66 bp
< 90%
6.39% p.a. (6.41% p.a. comparison rate*)
7.13% p.a.
74 bp
< 95%
7.19% p.a. (7.22% p.a. comparison rate*)
7.38% p.a.
19 bp

Mozo averages for variable home loans with 80% LVR (OO, P&I). 

Like with most home loans, lower loan-to-value ratio (LVR) tiers get lower interest rates

The changes come a week ahead of RBA Day. The year's first RBA interest rate decision will be announced on Tuesday, 7 February. 

The Reserve Bank of Australia has certainly maintained a tightening bias in its monetary policy, meaning they’re likely to hike rates while inflation remains high.

However, recently, there has been a wave of home loan lenders slashing rates across fixed mortgages. For major bank Macquarie to cut its variable rates signals a greater shift in the market. Lenders may expect interest rates to start dropping this year

It’s a timely reminder to home loan borrowers comparing deals that just because the interest rate environment is still high, doesn’t mean there aren’t lenders keen for your business. You can compare low-rate home loans in the table below.

Macquarie Basic Fixed Home Loan
  • Competitive 3-year fixed rate of 5.99% p.a (6.13% p.a. comparison) 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 3 year rate is a low 5.99% p.a. (6.13% p.a.) 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

Compare low rate home loans - last updated 23 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Variable Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    6.05% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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