Both the Basic and Offset fixed products are down for both owner occupiers and investors.
After a 0.20% cut the new lowest OO rate is now 4.99% p.a. (5.54% p.a. comparison rate*) for two years fixed, LVR up to 70%.
That rate also applies to customers with an offset account, although the comparison rate is higher (5.77% p.a.*) because of the extra fees.
Macquarie Bank offset home loans also can't be fully fixed - customers need to keep at least $20,000 in a separate variable account with a split loan.
For investors, the new lowest rate is now 5.15% p.a. (5.65% p.a. comparison rate* for the basic product, 5.88% p.a. comparison rate* to include an offset), also for two years fixed.
While there are a few lenders like Greater Bank and Regional Australia Bank offering marginally lower rates, Macquarie's new fixed rates are now well below any of the majors.
Read more: Macquarie Bank home loans
Will fixed rate uptake increase?
With several Australian home loan products now advertising rates below 5% p.a., it's the lowest that fixed rates have been in several years.
Fixed rates have been on average well lower than variable for months - according to the RBA the average fixed rate (3 year term or less) funded in May was 5.5% p.a. compared to 5.8% p.a. for variable rates.
Nevertheless, most borrowers continue to choose variable, with many home loan holders reluctant to lock in a fixed rate when variable rates could decrease in the coming months.
ASX's rate tracker indicates most traders are expecting the RBA to cut the cash rate at the August monetary policy meeting in a fortnight, with further cuts by the end of the year possible.
However, this still isn't guaranteed and should there be some unexpected development that makes the RBA surprise everyone and hold again, these fixed rates might start to look far more attractive.
Macquarie Bank new home loan rates
These are some of the new Macquarie rates for owner occupiers (making principal and interest repayments):
| Product (Fixed Term, LVR) | Interest Rate | Comparison Rate (Basic) | Comparison Rate (Offset) |
|---|---|---|---|
| 1 Year Fixed, ≤70% LVR | 5.09% p.a. | 5.61% p.a. | 5.84% p.a. |
| 1 Year Fixed, ≤80% LVR | 5.19% p.a. | 5.66% p.a. | 5.89% p.a. |
| 1 Year Fixed, ≤95% LVR | 5.45% p.a. | 6.59% p.a. | 6.81% p.a. |
| 2 Year Fixed, ≤70% LVR | 4.99% p.a. | 5.54% p.a. | 5.77% p.a. |
| 2 Year Fixed, ≤80% LVR | 5.09% p.a. | 5.60% p.a. | 5.83% p.a. |
| 2 Year Fixed, ≤95% LVR | 5.59% p.a. | 6.50% p.a. | 6.72% p.a. |
| 3 Year Fixed, ≤70% LVR | 5.09% p.a. | 5.51% p.a. | 5.74% p.a. |
| 3 Year Fixed, ≤80% LVR | 5.19% p.a. | 5.58% p.a. | 5.81% p.a. |
| 3 Year Fixed, ≤95% LVR | 5.69% p.a. | 6.43% p.a. | 6.65% p.a. |
| 4 Year Fixed, ≤70% LVR | 5.29% p.a. | 5.54% p.a. | 5.77% p.a. |
| 4 Year Fixed, ≤80% LVR | 5.39% p.a. | 5.61% p.a. | 5.84% p.a. |
| 4 Year Fixed, ≤95% LVR | 5.89% p.a. | 6.42% p.a. | 6.64% p.a. |
| 5 Year Fixed, ≤70% LVR | 5.29% p.a. | 5.51% p.a. | 5.75% p.a. |
| 5 Year Fixed, ≤80% LVR | 5.39% p.a. | 5.59% p.a. | 5.82% p.a. |
| 5 Year Fixed, ≤95% LVR | 5.89% p.a. | 6.36% p.a. | 6.58% p.a. |
And for investors:
| Product (Fixed Term, LVR) | Interest Rate | Comparison Rate (Basic) | Comparison Rate (Offset) |
|---|---|---|---|
| 1 Year Fixed, ≤70% LVR | 5.25% p.a. | 5.72% p.a. | 5.94% p.a. |
| 1 Year Fixed, ≤80% LVR | 5.35% p.a. | 5.82% p.a. | 6.04% p.a. |
| 1 Year Fixed, ≤90% LVR | 5.75% p.a. | 6.63% p.a. | 6.85% p.a. |
| 2 Year Fixed, ≤70% LVR | 5.15% p.a. | 5.65% p.a. | 5.88% p.a. |
| 2 Year Fixed, ≤80% LVR | 5.25% p.a. | 5.75% p.a. | 5.98% p.a. |
| 2 Year Fixed, ≤90% LVR | 5.59% p.a. | 6.50% p.a. | 6.72% p.a. |
| 3 Year Fixed, ≤70% LVR | 5.25% p.a. | 5.63% p.a. | 5.86% p.a. |
| 3 Year Fixed, ≤80% LVR | 5.35% p.a. | 5.73% p.a. | 5.96% p.a. |
| 3 Year Fixed, ≤90% LVR | 5.69% p.a. | 6.43% p.a. | 6.66% p.a. |
| 4 Year Fixed, ≤70% LVR | 5.45% p.a. | 5.66% p.a. | 5.89% p.a. |
| 4 Year Fixed, ≤80% LVR | 5.55% p.a. | 5.76% p.a. | 5.99% p.a. |
| 4 Year Fixed, ≤90% LVR | 5.79% p.a. | 6.39% p.a. | 6.61% p.a. |
| 5 Year Fixed, ≤70% LVR | 5.45% p.a. | 5.64% p.a. | 5.87% p.a. |
| 5 Year Fixed, ≤80% LVR | 5.55% p.a. | 5.74% p.a. | 5.97% p.a. |
| 5 Year Fixed, ≤90% LVR | 5.79% p.a. | 6.32% p.a. | 6.55% p.a. |
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Buying a home or looking to refinance? The table below features fixed rate home loans with some of the lowest interest rates on the market for owner occupiers.
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
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