- Macquarie Bank has lifted its fixed home loan interest rates by up to 30 basis points
- The increases apply to both owner occupier and investor home loans
- Macquarie is the first major lender to raise its home loan rates in recent weeks
Australia's fifth-largest home lender has lifted its fixed home loan rates by up to 30 basis points on Tuesday.
The hikes apply across the board to owner-occupier and investor home loans, with the best new advertised fixed rate at 6.39% p.a. for a basic owner-occupier home loan locked in for one, two, or three years.
See also: What are the different types of home loans?
Here's a selection of Macquarie's new basic home loan rates for owner occupiers making principal and interest (P&I) repayments:
| Interest rate | Comparison rate* | Change (%) | |
| 1 year | |||
| ≤ 70% | 6.39% p.a. | 6.10% p.a. | +0.20 |
| ≤ 80% | 6.44% p.a. | 6.15% p.a. | +0.20 |
| ≤ 95% | 6.74% p.a. | 7.08% p.a. | +0.20 |
| 2 year | |||
| ≤ 70% | 6.39% p.a. | 6.13% p.a. | +0.25 |
| ≤ 80% | 6.44% p.a. | 6.18% p.a. | +0.25 |
| ≤ 95% | 6.74% p.a. | 7.04% p.a. | +0.25 |
| 3 year | |||
| ≤ 70% | 6.39% p.a. | 6.16% p.a. | +0.30 |
| ≤ 80% | 6.44% p.a. | 6.21% p.a. | +0.30 |
| ≤ 95% | 6.74% p.a. | 7.01% p.a. | +0.25 |
| 4 year | |||
| ≤ 70% | 6.44% p.a. | 6.21% p.a. | +0.15 |
| ≤ 80% | 6.49% p.a. | 6.26% p.a. | +0.15 |
| ≤ 95% | 6.79% p.a. | 7.00% p.a. | +0.10 |
| 5 year | |||
| ≤ 70% | 6.44% p.a. | 6.24% p.a. | +0.15 |
| ≤ 80% | 6.49% p.a. | 6.29% p.a. | +0.15 |
| ≤ 95% | 6.79% p.a. | 6.98% p.a. | +0.10 |
The same interest rates apply for offset home loans although comparison rates are higher. (Offset benefits don't apply when the loan is in a fixed-rate period.)
Fixed-rate home loans do a U-turn
The move sends a signal Macquarie's rate-fixers are likely expecting another near-term cash rate increase.
Raising fixed home loan rates is one way lenders can cover forecast increases in their wholesale borrowing costs in a rising interest rate market.
The rate hikes come three months after Macquarie slashed its fixed home loan rates in June, some by up to 1.15% p.a.
That was in the wake of the RBA's third consecutive cash rate increase in May and the federal budget which effectively put the brakes on Australia's already slowing housing market.
Many analysts judged the May cash rate hike to be the last in the current upcycle but sentiment has turned on the back of recent economic data.
See also:
- Inflation slows to 3.5%, underlying price pressures remain sticky
- Household spending growth hits fastest pace in 3 years
- Households now saving 6.5% of their income as wages rise
Will the cash rate move again in 2026?
Three of the big four bank economists are now expecting another cash rate hike in 2026.
NAB is expecting the next one later this month while CommBank and ANZ are tipping November.
At this stage, Westpac is still forecasting no further cash rate increases this cycle, although acknowledges there are upside risks.
At the same time, markets are currently pricing in a 60% chance of a cash rate increase this month.
What is happening with home loan rates?
Rate setters are faced with balancing the possibility of another cash rate increase with plummeting demand for home loans on the retail lending market.
See also: Mortgage demand plunges, first homebuyers hardest hit
While a forecast cash rate increase might dictate a lift in fixed home loan interest rates, competing for new business in a shrinking market applies pressure to keep home loan rates as attractive as possible.
Since 1 August, a handful of smaller lenders have moved to raise targeted home loan interest rates, most often accompanied by rate cuts on other products.
Macquarie is the biggest bank to make a major shift in its home loan rates in recent weeks.
The RBA's monetary policy board is due to meet on 28-29 September.
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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.
| 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. | 6.02% 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 |
