It was all quiet on the home loan market prior to the RBA decision on Tuesday afternoon which saw Australia's cash rate remain on hold at 4.35%, as widely anticipated.

Some commentators were a little skittish leading up to the May meeting with the March quarter inflation result throwing up a 1% rise, taking the annual rate to 3.6%, still above the RBA target of 2-3%.

There's been some shifting in sentiment that we may not see rates cut this calendar year while some analysts say another rise - or two - could be on the cards.

Chief economic advisor at Judo Bank Warren Hogan told the Savings Tip Jar podcast the board needs to put a five in front of the number to tame the inflationary beast.

The big four banks' economists remain steadfast, however, that Australia will see a cut in the cash rate in November.

But in a week where the Reserve Bank board held firm, the general trend on the mortgage market was upwards.

Macquarie lifts fixed rates

Macquarie Bank was the biggest lender to raise its fixed rates which have generally been falling across the market over the past few months.

Maybe its analysts see something in the tea leaves. 

Macquarie's Basic and Offset Fixed principal and interest (P&I) and interest only (IO) loans for both owner occupiers and investors rose by between 24-26 basis points across a raft of products.

Its lowest fixed rate loan is now its Basic Owner Occupier P&I loan for loan-to-value ratio (LVR) ≤ 70% at 6.25% p.a. (6.20% comparison rate*), fixed for three years.

The rates go up from there, but it may not make too much difference to Macquarie's foray into the home lending market.

The latest ABS lending data for March shows only 1.4% of new loans, by value, are being taken out at fixed rates.

Last month, Macquarie dropped its Basic Variable owner occupier home loan to a competitive 6.14% p.a. (6.16% p.a. comparison rate*) for LVR 60-70%.

Australia's fifth-largest home lender now has a market share of 5.3%.

Other fixed rate movers

Macquarie wasn't alone in raising fixed rates after the Reserve Bank decision.

It was joined by Great Southern Bank which also hiked a range of fixed owner occupier and investment P&I and IO rates by 25 basis points.

Great Southern also raised some of its variable rates by a more modest five basis points, as follows:

Product Change (%) New rate Comparison rate*
Basic Variable P&I (LVR 70-80%) +0.05 6.24% p.a. 6.30% p.a.*
Offset Variable (LVR 70-80%) +0.05 6.29% p.a. 6.35% p.a.*
Basic Construction (LVR 70-80%) IO +0.05 6.24% p.a. 6.30% p.a.*
Offset Construction (LVR 70-80%) IO +0.05 6.29% p.a. 6.35% p.a.*

MyState Bank also increased fixed interest rates on a range of Residential and Investment loans by up to 30 basis points.

Its lowest fixed rate is now 6.19% p.a. (7.78% p.a. comparison rate*) for an LVR ≤ 70% residential loan fixed for three years.

Bank Australia started Friday with a 15-basis point rise across a range of its Basic and Premium Package fixed rate mortgages.

The hike takes the rate on both its Basic and Premium Package fixed loans for two years to 6.14% p.a. (6.19% p.a. comparison rate*) for LVR ≤60%-≤80% loans.

Firefighters fan big moves on fixed rates

The Teachers Mutual conglomerate consisting of Fightfighters Mutual Bank, Teachers Mutual Bank, Health Professionals Bank, and UniBank have raised many of their fixed rate loans by up to 80 basis points this week.

The group has lifted rates on a range of fixed rate products including its Your Way and Your Way Plus owner occupier and investment loans.

There were also a couple of rates drops in among the long list, including:

Product Change (%) New rate Comparison rate*
Your Way P&I Fixed 2 years -0.20 6.29% p.a. 6.31% p.a.*
Investment Your Way P&I Fixed 3 years -0.15 6.54% p.a. 6.60% p.a.*

There's always one

Sovereign NZ was doing its own thing this week, dropping a selection of its Go Home Loan fixed mortgage interest rates by up to 10 basis points for terms of six months, one year and four years.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
6.14% p.a.
6.39% p.a.
Principal & Interest
Flexible Home Loan Options
  • $0 application fee & fast turnaround times
  • Estimate your borrowing power in as little as 1 minute
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Daria Nepriakhina on Unsplash

Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy