- Macquarie Bank has reduced its variable home loan rates by five basis points
- It comes amid a slump in new home lending across the market
- Earlier this week, NAB revealed its home loan applications were down 15% in the June quarter compared with the previous quarter
Australia's 'fifth big bank' has knocked five basis points off its advertised variable home loan interest rates as the mortgage market stagnates amid a nationwide downturn.
Macquarie Bank is Australia's fifth-largest home lender, originating around 95% of its home loans through mortgage brokers.
On Friday, it trimmed the range of its variable home loan rates, delivering a new lowest rate of 6.04% p.a. (6.06% p.a. comparison rate*) for owner occupiers with a loan-to-value ratio (LVR) of 70% or less taking out a basic home loan and making principal and interest (P&I) repayments.
The same rate applies to those choosing to add an offset account although the comparison rate rises to 6.29% p.a., owing to an additional annual fee.
Here's a look at Macquarie's new home loan rates for owner occupiers making P&I repayments:
| LVR | Basic home loan | Comparison rate | Offset home loan | Comparison rate |
| ≤ 60% | 6.04% p.a. | 6.06% p.a. | 6.04% p.a. | 6.29% p.a. |
| ≤ 70% | 6.04% p.a. | 6.06% p.a. | 6.04% p.a. | 6.29% p.a. |
| ≤ 80% | 6.09% p.a. | 6.11% p.a. | 6.09% p.a. | 6.34% p.a. |
| ≤ 90% | 6.29% p.a. | 6.31% p.a. | 6.29% p.a. | 6.54% p.a. |
| ≤ 95% | 7.09% p.a. | 7.12% p.a. | 7.09% p.a. | 7.33% p.a. |
Here's a rundown of the new investor rates for those opting for P&I repayments:
| LVR | Basic home loan | Comparison rate | Offset home loan | Comparison rate |
| ≤ 60% | 6.14% p.a. | 6.16% p.a. | 6.14% p.a. | 6.39% p.a. |
| ≤ 70% | 6.19% p.a. | 6.21% p.a. | 6.19% p.a. | 6.44% p.a. |
| ≤ 80% | 6.24% p.a. | 6.26% p.a. | 6.24% p.a. | 6.49% p.a. |
| ≤ 90% | 7.10% p.a. | 7.13% p.a. | 7.10% p.a. | 7.34% p.a. |
Macquarie's interest-only rates jump by 20 basis points or more and are only available to borrowers with at least 80% LVR.
Macquarie dangles the bait
Macquarie is the first of the major lenders to institute an across-the-board cut to variable home loan rates so far this financial year.
It comes in the same week that markets doused expectations of another cash rate increase in August on the back of a weaker inflation print for the June quarter.
It also follows Macquarie slashing its fixed home loan rates by up to 50 basis points last month.
Many other lenders dropping fixed rates haven't been quite so bold with their cuts, but include big four stablemates NAB and ANZ, as well as ING.
Smaller and mid-tier lenders had begun cutting some variable rates earlier this month, including Bendigo Bank, Suncorp, and AMP Bank.
Many of the cuts came while some sections of the market still entertained the possibility of another cash rate increase in either August or September, indicating the lower rates were likely motivated by market forces.
Mortgage demand plunges
It's now no secret that home loan demand has taken a steep dive, with NAB revealing its home loan applications had plunged 15% in the June quarter compared to the March quarter.
The figure was released in a ASX briefing on Thursday, which also reported a 9% drop in the value of home loan applications over the quarter.
NAB has been the first bank to quantify the withering demand for new mortgages on the back of a housing market slowdown.
The downturn was already being felt after three consecutive cash rate increases in 2026 before the May federal budget housing investor tax changes dealt the killer blow.
Westpac had previously revealed investor home loan applications had plummeted 20% in just the three weeks after the budget announcement.
Earlier this month, credit reporting agency Equifax said its data showed home loan applications were down 14% in June, compounding a 6.6% decline in May.
First homebuyers were harder hit with June applications plunging 17.2% after a 9.1% fall in May.
Home lenders are responding by dropping their mortgage rates in a bid to win what business remains in the market.
New home value data for July is due to be released early next week and is expected to reveal a deepening of the current housing downcycle.
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.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
