Australia’s other big bank has sent another signal it’s looking for a bigger slice of the retail home lending market, trimming its variable rates by up to 10 basis points.

Macquarie Bank is currently Australia’s fifth-largest home lender, with more than 5% market share.

This week, it let the market know it's not resting there, dropping rates on its Basic Variable owner occupier and investment principal and interest (P&I) and interest only (IO) home loans.

It takes Macquarie’s lowest rate to 6.14% p.a. (6.16% p.a. comparison rate*) for a Basic Variable owner occupier P&I loan with a loan-to-value ratio (LVR) between 60-70%.

Here are the new owner occupier rates:

Product Change (%) New rate Comparison rate*
Basic Variable P&I 60 -0.01 6.14% p.a. 6.16% p.a.*
Basic Variable P&I ≤70 -0.01 6.14% p.a. 6.16% p.a.*
Basic Variable IO ≤60 -0.05 6.50% p.a. 6.53% p.a.*
Basic Variable IO ≤70 -0.05 6.54% p.a. 6.57% p.a.*
Basic Variable IO ≤80 -0.10 6.65% p.a. 6.68% p.a.*
Offset Variable P&I ≤60 -0.01 6.14% p.a. 6.39% p.a.*
Offset Variable P&I ≤70 -0.01 6.14% p.a. 6.39% p.a.*
Offset Variable IO ≤60 -0.05 6.50% p.a. 6.75% p.a.*
Offset Variable IO ≤70 -0.05 6.54% p.a. 6.79% p.a.*
Offset Variable IO ≤80 -0.10 6.65% p.a. 6.90% p.a.*

Macquarie fires another shot

As at the end of December, Macquarie’s home loan book had grown to $118 billion, a compound annual growth rate of 24% over the past ten years.

The investment bank’s continued growth in the home lending space has also come without home loan cash back deals offered by its major competitors.

Macquarie focuses on home loans with low loan-to-value ratios, generally lower than 80%, and touts its quick loan turnaround times.

This week's trim to home loan rates also coincides with the bank's announcement it's shutting down its car loan business to concentrate on its core mortgage and deposit offerings.

Suncorp trims Special Offer rates

The Queensland-based bank, currently being acquired by ANZ, shaved five basis points off its Special Offer home loan rates on Wednesday.

Suncorp Bank was Australia’s ninth-largest home lender last year, a big motivator for ANZ which was looking to extend both its share of the home loan market and its business in Queensland.  

Suncorp’s lowest home loan variable rate is now 6.13% p.a. (6.14% p.a. comparison rate*) for its Back to Basics Better Together Special Offer for a P&I loan with ≤60% LVR.

Here are some of Suncorp’s new P&I rates for owner occupiers:

Product Change (%) New rate Comparison rate*
Back to Basics Better Together Special Offer ≤60% -0.05 6.13% p.a. 6.14% p.a.*

Back to Basics Better Together Special Offer ≤70%

-0.05 6.14% p.a. 6.15% p.a.*
Back to Basics Better Together Special Offer 70-80% -0.05 6.14% p.a. 6.15% p.a.*
Home Package Plus ≤60% Special Offer -0.05 6.19% p.a. 6.54% p.a.*
Home Package Plus ≤70% Special Offer  -0.05  6.24% p.a. 6.59% p.a.*
Home Package Plus 70-80% Special Offer -0.05 6.25% p.a. 6.60% p.a.*

ANZ has said it has licensed the Suncorp Bank brand for the next five to seven years.

Illawarra slashes variable rates

Illawarra Credit Union was the other big mover on variable rates this week, cutting some by up to 116 basis points.

Its Bare Essentials Variable P&I home loan for up to 95% LVR is now 6.24% p.a. (6.34% comparison rate*) – a 60 basis points drop.

Illawarra’s Works Package Home Loan Variable P&I rate is 6.34% p.a. (6.78% p.a. comparison rate*), down 41 basis points.

Works loans come with a 100% offset account, redraw facilities, no credit card frees, and a split loan option.

MOVE moves rates higher

Heading the other way, MOVE Bank has added five basis points to a raft of its variable owner occupier and investment home loan rates on Friday morning.

Despite this, its mortgage rates remain competitive with its Everyday Variable Home Loan P&I with 80% LVR still under the 6% mark at 5.99% p.a. (6.04% p.a. comparison rate*).

Its Offset Variable Home loan is now 6.19% p.a. (6.24% comparison rate*) offering a 100% offset account with no ongoing monthly or annual fees. 

More fixed rate drops

Finally, two more banks are continuing the recent market plunge in fixed rate home loans.

Bank Australia has taken 10 basis points off a range of its Basic Fixed and Premium Package rates, fixed for two and three years.

It takes its Basic Fixed two- and three-year loans under 80% LVR below the 6% mark at 5.99% p.a. (6.16% comparison rate*).

Meantime, Summerland has cut is Standard Fixed and Investment Standard Fixed rates by up to 30 basis points.

Its lowest rate is now 5.94% p.a. (6.73% comparison rate*) for its Standard Fixed three years Special Offer ≤60% LVR loan.


Advertisement

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.
$2,408
Principal & Interest
Variable
$0
$530
70%
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.
$2,396
Principal & Interest
Variable
$0
$0
80%
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.
$2,434
Principal & Interest
Variable
$0
$250
60%
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
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 Blake Wheeler 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