Entering the Australian market in 1969 as Hill Samuel Australia, Macquarie Bank opened its doors with three staff and an ambition to provide advisory and investment banking services of an international standard to the Australian market.
It wasn’t until 1985 that Hill Samuel Australia obtained an Australian banking license, making way for the birth of Macquarie Bank Limited.
Since then, Macquarie has grown exponentially as a financial services group, operating in 34 markets globally as well as establishing itself as Australia’s “other big bank” in the domestic retail and business banking sector.
Macquarie’s home lending growth
In a relatively short period, Macquarie’s share of the Australian home lending market has surged to 5.5%. Its growth rate regularly outstrips its big bank rivals, albeit from a much lower base, and has largely occurred in a highly competitive home lending market.
As at September 2024, Macquarie’s lending book showed monthly growth of 1.6% compared to overall market growth of 0.4%.
It’s worth noting Macquarie has never offered a cashback deal or other inducements to snare borrowers from other lenders, preferring to stand behind the strength of its products.
A Macquarie bank spokesperson attributes the bank’s home lending success to the significant investments Macquarie has made over a number of years to its home loan origination process and ongoing commitment to its broker channel.
It’s also maintained a market focus on lower loan-to-value ratio (LVR) lending tiers (below 80% LVR).
“With our home loan products, customers tell us they love our market-leading turnaround times and that they value the digital features and functionality that we offer,” the spokesperson said.
Indeed, Macquarie boasts market-leading turnaround times - a matter of hours for some home loan applications - as well as cutting-edge technology platforms and security.
“Aside from great rates and a simple and intuitive banking experience, we know that security is a priority for our customers,” a Macquarie spokesperson said.
“With Macquarie, customers have access to Macquarie Authenticator, our market-leading digital verification app, which provides actionable, real-time push notifications for transactions, and account activity meaning they can have peace of mind knowing they have control over their accounts."
What home loans does Macquarie Bank offer?
Macquarie Bank offers both variable and fixed rate home loans for owner occupiers and investors making either principal and interest (P&I) or interest only (IO) payments.
These flexible options are offered through Macquarie’s two home loan products: Basic Home Loan and Offset Home Loan.
Check out some of Macquarie Bank’s home loan offerings for owner occupiers in the table below.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.19% p.a. | 5.81% p.a. | $2,742 | Principal & Interest | Fixed | $248 | $350 | 70% | |||||||||||||
5.19% p.a. | 5.77% p.a. | $2,742 | Principal & Interest | Fixed | $248 | $350 | 70% | |||||||||||||
5.19% p.a. | 5.58% p.a. | $2,742 | Principal & Interest | Fixed | $0 | $350 | 70% | |||||||||||||
5.19% p.a. | 5.54% p.a. | $2,742 | Principal & Interest | Fixed | $0 | $350 | 70% | |||||||||||||
5.29% p.a. | 5.63% p.a. | $2,773 | Principal & Interest | Fixed | $0 | $350 | 70% | |||||||||||||
5.29% p.a. | 5.60% p.a. | $2,773 | Principal & Interest | Fixed | $0 | $350 | 80% | |||||||||||||
5.29% p.a. | 5.86% p.a. | $2,773 | Principal & Interest | Fixed | $248 | $350 | 70% | |||||||||||||
5.29% p.a. | 5.83% p.a. | $2,773 | Principal & Interest | Fixed | $248 | $350 | 80% | |||||||||||||
5.29% p.a. | 5.87% p.a. | $2,773 | Principal & Interest | Fixed | $248 | $350 | 80% | |||||||||||||
5.29% p.a. | 5.64% p.a. | $2,773 | Principal & Interest | Fixed | $0 | $350 | 80% |
Basic Home Loan
Macquarie’s Basic product comes with:
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no ongoing fees
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fee-free redraw
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no fee to split into multiple loan accounts
Offset Home Loan
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up to 10 offset accounts
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no fee to redraw or split the loan into multiple accounts
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annual fee applies (payable every six months)
Features of Macquarie Bank home loans
Low comparison rates
A key feature across Macquarie Bank’s home loan portfolio is that comparison rates vary only slightly from the advertised rates. For borrowers, this implies there are few extra fees or other costs associated with the home loans.
Fee-free
Selected home loan products across Macquarie Bank’s portfolio are free from establishment fees and/or monthly fees although Macquarie’s Offset product comes with an annual fee.
Offset accounts
Macquarie Bank’s Offset Home Loan package provides variable rate borrowers with a flexible loan structure and competitive rates although offset accounts cannot be linked to fixed rate loan accounts. The offset package also waives fees for a Macquarie Black Card and Macquarie Platinum Card.
Redraw facility
Macquarie Bank may provide some variable rate borrowers with a redraw facility allowing them to access some, or all, of any additional payments they’ve made on the loan over the minimum monthly repayment amount. Redraw facilities are not available on fixed-rate loans although any extra payments can be accessed after the fixed-rate period ends.
Additional repayments
Macquarie Bank allows unlimited additional repayments to be made to variable interest rate loan accounts, effectively reducing the interest borrowers pay over the term of the loan. For fixed-rate loan accounts, additional repayments are limited to a maximum of $10,000 per year.
Eligibility criteria
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18 years old or over
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Australian citizen, or permanent or temporary resident
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Australian tax resident living in Australia
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have an Australian mobile number
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have income from an employer (PAYG) or self-employed
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a single applicant or with a co-borrower
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applying for a residential loan
Macquarie Bank Home Loans Review
Managing Director at Finch Financial Services Julian Finch says in his experience, Macquarie Bank is a great choice for borrowers.
"[Macquarie] is happy to look at all structures - individual, company and trust borrowers, self employed, or PAYG," he told Savings.com.au.
"It's also best in class for turnaround and efficiency, with great tech and great value for money."
Pros of Macquarie home loans
"Macquarie are the go-to lender for a first class technology platform - whatever it is you like on internet banking, Macquarie makes it better."
"Macquarie is also the benchmark in terms of time to approval - they can have you formally approved on the same day - our record is 53 minutes. If you fit their lending policy and are a borrower that is well organised, you can have the deal done in less than a day!"
"Macquarie Bank is the primary institution for any borrower that fits into their lending appetite."
Cons of Macquarie home loans
"If you don't fit their lending criteria they are pretty inflexible…it's [often] a swift and firm no, but at least they don't keep you hanging."
"If you have a blemish on your credit file or you have large amounts of unsecured debt, this might not be the lender for you."
"As an investor, they might have lower servicing than some other well-known brands."
-Julian Finch, Managing Director, Finch Financial Services
First published on October 2024
Image by Maria Ziegler via Unsplash.
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