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.

Advertisement

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.

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
4.99% p.a.
5.54% p.a.
$2,681
Principal & Interest
Fixed
$0
$350
70%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 30% Min Deposit
  • Extra Repayments
  • More details
5.34% p.a.
5.91% p.a.
$2,789
Principal & Interest
Fixed
$10
$150
90%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 10% Min Deposit
  • More details
5.30% p.a.
5.46% p.a.
$2,777
Principal & Interest
Fixed
$0
$0
90%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 10% Min Deposit
  • Offset
  • Redraw
  • More details
4.99% p.a.
6.90% p.a.
$2,681
Principal & Interest
Fixed
$0
$180
95%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 5% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
5.29% p.a.
5.50% p.a.
$2,773
Principal & Interest
Fixed
$0
$0
80%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
5.79% p.a.
7.85% p.a.
$2,931
Principal & Interest
Fixed
$8
$600
70%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
5.64% p.a.
6.68% p.a.
$2,883
Principal & Interest
Fixed
$null
$160
95%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 5% Min Deposit
  • Offset
  • More details
5.44% p.a.
6.37% p.a.
$2,820
Principal & Interest
Fixed
$8
$350
80%
  • Owner Occupier
  • Fixed 2 Years
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
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 Leo_Visions 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!

Download Free
By subscribing you agree to our privacy policy