Macquarie is lifting its fixed home loans rates for both owner occupier and investment loans by up to 0.20%.
This sees its lowest fixed rate for owner occupiers back above the 5% mark at 5.19% p.a. (5.34% p.a. comparison rate*) for borrowers with ≤70% loan-to-value ratio (LVR) fixing for two years and making principal and interest (P&I) repayments.
That's a 0.20% jump on the old rate.
Borrowers with the same credentials can also secure 5.19% p.a. fixing for one year (5.35% p.a. comparison rate*) - an increase of 0.10%.
See also: Which home loans offer interest rates below 5%?
Market trend?
Macquarie's announcement comes a day after Westpac hiked its one- to three-year fixed mortgage rates by up to 0.35% p.a., citing the increased cost of fixed rate funding in the current market.
The two bigger players join a handful of smaller lenders who have been adjusting their fixed home loan rates in the wake of last week's Reserve Bank decision to keep the cash rate on hold.
Economists and markets are in general agreement there will not be any further cuts to the 3.6% cash rate until mid-next year, if at all.
Macquarie's hikes are not as steep as Westpac's and also extend to its five-year fixed rates.
Here are the latest basic fixed rate changes for owner occupier borrowers making P&I repayments:
| Fixed period | LVR | Rate | Comparison rate* | Change (%) |
| One year | ≤70% | 5.19% p.a. | 5.35% p.a. | +0.10 |
| ≤80% | 5.29% p.a. | 5.40% p.a. | +0.20 | |
| ≤95% | 5.49% | 6.32% p.a. | +0.04 | |
| Two year | ≤70% | 5.19% p.a. | 5.34% p.a. | +0.10 |
| ≤80% | 5.29% p.a. | 5.39% p.a. | +0.20 | |
| Three year | ≤70% | 5.29% p.a. | 5.35% p.a. | +0.20 |
| ≤80% | 5.39% | 5.41% p.a. | +0.20 | |
| Five years | ≤70% | 5.39% p.a. | 5.38% p.a. | +0.20 |
| ≤80% | 5.49% p.a. | 5.46% p.a. | +0.10 |
Macquarie offers the same fixed rates on its offset home loan products, but with higher comparison rates.
However, offset benefits are not available when the linked loan account is on a fixed rate of interest.
Interest-only fixed rates for owner occupiers - only available to those with up to 80% LVR - are also higher.
Investor rates also lift
Macquarie's investment home loans have also seen a rate hike.
Below are the changes to basic fixed investment home loan rates for borrowers making P&I repayments:
| Fixed period | LVR | Rate | Comparison rate* | Change (%) | |
| One year | ≤70% | 5.35% p.a. | 5.50% p.a. | +0.10 | |
| ≤80% | 5.45% | 5.55% p.a. | _0.10 | ||
| Two years | ≤70% | 5.35% p.a. | 5.49% p.a. | +0.20 | |
| ≤80% | 5.45% p.a. | 5.55% p.a. | +0.20 | ||
| ≤90% | 5.75% p.a. | 6.30% p.a. | +0.16 | ||
| Three years | ≤70% | 5.45% p.a. | 5.50% p.a. | +0.20 | |
| ≤80% | 5.55% p.a. | 5.57% p.a. | +0.20 | ||
| ≤90% | 5.85% p.a. | 6.27% p.a. | +0.16 | ||
| Four years | ≤90% | 5.99% p.a. | 6.28% p.a. | +0.20 | |
| Five years | ≤70% | 5.55% p.a. | 5.54% p.a. | +0.10 | |
| ≤80% | 5.65% p.a. | 5.61% p.a. | +0.10 | ||
| ≤90% | 5.99% p.a. | 6.24% p.a. | +0.20 |
Again, the same fixed rates are offered for investor offset home loans although these come with higher comparison rates and offset benefits don't apply when when the rate is in the fixed period.
Investor interest-only fixed rates have also been lifted.
Macquarie home lending on a roll
Macquarie's growing home lending book continues to see it soaking up market share.
Its home loan balances gained 13% to more than $160 billion in the six months to the end of September.
Its share of the mortgage market was at 6.5% at the end of September with 95% of its loans written by mortgage brokers.
Its strategy to invest in its technology platforms, making it easier for brokers, is in contrast with the big banks which are working to originate more loans in-house.
See also: Compare home loans from the big four banks
Macquarie's home lending is more than funded by its deposits which were at $192.5 billion (including offset account balances) at the end of September.
This was up 12% in the six months to September for a 6% market share.
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. | 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 |
