A rate cut on the 18 February monetary policy decision appears to be gathering momentum - as of 22 January the ASX RBA rate tracker estimated a 78% chance of a 25 basis point cut.

Some lenders have already started trimming rates, with Macquarie Bank this week's largest lender to cut.

Macquarie cut fixed rates by up to 16 bps for both owner occupiers and investors, taking rates well below what's on offer at the other major banks.

It's not just fixed rates coming down either, with Teachers Mutual Group trimming back variable rates.

Macquarie Bank cuts fixed rates up to 16 bps

Australia's fifth largest home loan lender trimmed its range of fixed rates this week by up to 0.16%

The new lowest rate at Macquarie is now 5.55% p.a. on both two and three year fixed terms for owner occupiers with LVR below 70%, which is well below any advertised rate at the big four.

Here are the new rates for owner occupiers:

ProductInterest rate change
1 year fixed Owner Occupier (LVR 0.01-70%)Down 16 bps to 5.69% p.a. (6.12% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 0.01-70%)Down 14 bps to 5.55% p.a. (6.05% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 0.01-70%)Down 14 bps to 5.55% p.a. (6.00% p.a. comparison rate*).
1 year fixed Owner Occupier (LVR 70.01-80%)Down 16 bps to 5.79% p.a. (6.17% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 70.01-80%)Down 14 bps to 5.65% p.a. (6.11% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 70.01-80%)Down 14 bps to 5.65% p.a. (6.06% p.a. comparison rate*).
1 year fixed Owner Occupier (LVR 80.01-95%)Down 14 bps to 6.05% p.a. (7.09% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 80.01-95%)Down 14 bps to 6.15% p.a. (7.0% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 80.01-95%)Down 14 bps to 6.15% p.a. (6.91% p.a. comparison rate*).

For investors, the lowest rate is now 5.69% p.a., also for two and three year fixed terms.

ProductInterest rate change
1 year fixed Investment (LVR 0.01-70%)Down 14 bps to 5.85% p.a. (6.31% p.a. comparison rate*).
2 year fixed Investment (LVR 0.01-70%)Down 16 bps to 5.69% p.a. (6.24% p.a. comparison rate*).
3 year fixed Investment (LVR 0.01-70%)Down 16 bps to 5.69% p.a. (6.18% p.a. comparison rate*).
1 year fixed Investment (LVR 70.01-80%)Down 14 bps to 5.95% p.a. (6.65% p.a. comparison rate*).
2 year fixed Investment (LVR 70.01-80%)Down 16 bps to 5.79% p.a. (6.57% p.a. comparison rate*).
3 year fixed Investment (LVR 70.01-80%)Down 16 bps to 5.79% p.a. (6.51% p.a. comparison rate*).
1 year fixed Investment (LVR 80.01-90%)Down 14 bps to 6.35% p.a. (7.43% p.a. comparison rate*).
2 year fixed Investment (LVR 80.01-90%)Down 4 bps to 6.15% p.a. (7.30% p.a. comparison rate*).
3 year fixed Investment (LVR 80.01-90%)Down 4 bps to 6.15% p.a. (7.20% p.a. comparison rate*).

Teachers Mutual Group cut variable rates 5 bps

Just in time for the start of school term, Teachers Mutual Group trimmed variable rate home loans by 0.05%.

These rates apply at Teachers Mutual Bank, UniBank, Firefighters Mutual Bank, Health Professionals Bank and Hiver.

ProductInterest rate change
Your Way Plus Home Loan OO (LVR≤60%)Down 5 bps to 6.09% p.a. (6.39% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 60-80%)Down 5 bps to 6.19% p.a. (6.49% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 80-90%)Down 5 bps to 6.64% p.a. (6.94% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 90-95%)Down 5 bps to 6.89% p.a. (7.18% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR≤60%)Down 5 bps to 6.39% p.a. (6.69% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 60-80%)Down 5 bps to 6.49% p.a. (6.79% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 80-90%)Down 5 bps to 6.94% p.a. (7.23% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 90-95%)Down 5 bps to 7.19% p.a. (7.48% p.a. comparison rate*)

Other movers

  • IMB Bank cut some variable rates by up to 10 bps
  • BCU Bank cut fixed rates by up to 40 bps

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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
Filters
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
5.98% p.a.
$2,978
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.89% p.a.
5.80% p.a.
$2,962
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • 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.
 Disclosure
5.99% p.a.
6.02% p.a.
$2,995
Principal & Interest
Fixed
$0
$0
60%
  • Owner Occupier
  • Fixed 3 Years
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Competitive rates to help you save
  • A Dedicated Relationship Manager
  • Certainty of repayments with a fixed rate term
 Disclosure
5.93% p.a.
5.93% p.a.
$2,975
Principal & Interest
Variable
$0
$395
70%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • More details
 Disclosure
More home loans
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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