Macquarie's lowest variable investment rate now becomes 5.99% p.a. (6.01% p.a. comparison rate) for LVR up to 60%.

That's only 0.18% higher than Regional Australia Bank's no offset investment home loan (5.81% p.a. with a 5.82% p.a. comparison rate), the lowest variable investment rate in our database.

It was an otherwise quiet week in the mortgage market - with less than three weeks to go until the May monetary policy decision, lenders might be waiting to see if and by how much the RBA cuts.

Some lenders in recent weeks, however, have been increasing rates for new customers perhaps in a bid to gain margin before the inevitable fall. 

Apart from Macquarie's latest, the biggest news for many mortgagees this week was the CPI inflation numbers for Q1, generally the most important bit of data as far as the RBA is concerned.

Trimmed mean inflation over the 12 months to March was 2.9%, the first time since 2021 it's been within the target range (2-3%).

This might make a bigger cash rate cut appear more likely, but interestingly enough, the probability of a double sized 50 bp cut on 20 May actually dropped from 62% to 56% according to the ASX RBA rate tracker.

The quarterly headline figure was +0.9% which was stronger than expected. 

Macquarie Bank cuts variable investment rates

Product Rate Change
Basic Variable Investment (0-60%) Down 10bps to 5.99% p.a. (6.01% p.a. comparison rate*)
Basic Variable Investment (60-70%) Down 10bps to 5.99% p.a. (6.01% p.a. comparison rate*)
Basic Variable Investment (70-80%) Down 11bps to 6.09% p.a. (6.11% p.a. comparison rate*)
Basic Variable Investment (80-90%) Down 9bps to 6.95% p.a. (6.98% p.a. comparison rate*)
Offset Variable Investment (0-60%) Down 10bps to 5.99% p.a. (6.24% p.a. comparison rate*)
Offset Variable Investment (60-70%) Down 10bps to 5.99% p.a. (6.24% p.a. comparison rate*)
Offset Variable Investment (70-80%) Down 11bps to 6.09% p.a. (6.34% p.a. comparison rate*)
Offset Variable Investment (80-90%) Down 9bps to 6.95% p.a. (7.19% p.a. comparison rate*)

After these cuts, Macquarie become one of the few lenders offering investment variable rates below 6% p.a. while also including an offset account.

Variable investment rates at Macquarie are now well below those on offer at the other major banks - at Commonwealth Bank for example, its lowest variable investment rate is currently 6.09% p.a. (6.22% p.a. comparison rate*), which is also only available to customers who apply online.

Macquarie also cut interest only rates for investors, both basic and offset.

Huge new rates from Police Bank

Friday bought another momentous new rate - for the first time in years, there is officially a home loan product with a rate starting with a 4.

Admittedly, that's only available to current or retired police officers, but the 4.99% p.a. (5.82% p.a. comparison rate) may still hearten even non-police mortgage holders as a possible sign of things to come.

Read more: Police Bank new home loan rates

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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 Additional Repayments Split Loan Option TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
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.
  • Quick and easy online application process.
Disclosure
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
  • 100% owned 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
5.84% p.a.
6.08% p.a.
$2,947
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 Disclosure
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.

Important Information and Comparison Rate Warning

Picture by Rick Rothenburg on Unsplash



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