The move precedes the upcoming RBA meeting, amid a flurry of activity from other lenders, such as Auswide Bank, The Mutual Bank, and Unity Bank, which are also making notable rate changes, some as steep as 0.60%.

The wave of fixed-rate cuts signals growing confidence among lenders that the RBA will move to lower the official cash rate in its anticipated August policy meeting. Banks are acting ahead of what many now see as an inevitable shift in monetary policy.

Momentum is building across the lending sector, with more than two dozen providers now offering at least one fixed rate below 5%, making these once-rare deals a standard feature of the current market.

Macquarie Bank slashes fixed rates

Macquarie Bank, the country’s fifth-biggest lender, has reduced its fixed home loan rates by up to 0.20%, pushing its lowest two-year fixed rate for owner-occupiers down to 4.99% p.a. (5.54% p.a. comparison rate*), available with a loan-to-value ratio (LVR) of up to 70%.

Investment loan rates received similar cuts, with two-year fixed PI rates from 5.15% (5.65% p.a.*) for loans up to 70% LVR, reflecting a 0.20% drop.

Across both owner-occupied and investment categories, Macquarie has trimmed rates on fixed terms ranging from one to five years, with reductions mostly between 0.10% and 0.20%.

Loan amounts eligible for these rates range from $150,000 up to $5 million, with LVR limits generally capped between 70% and 80%, depending on the product.

Read more: Macquarie cuts fixed rate home loans

Auswide Bank shifts home loan rates

Auswide Bank has announced a series of targeted changes to its home loan rates, with most reductions benefiting borrowers with lower LVRs.

The Freedom Package Investment Variable Interest-Only loans for LVRs up to 60% have been cut by 0.25%, now offered at a rate of 5.74%.

Conversely, the bank has increased rates on some higher-risk products. Basic Investment Loans with LVRs between 80-90% rose by 0.15%, pushing rates to 6.34%.

Other Freedom Package variable principal and interest loans also saw modest rate drops between 0.1% and 0.2%, depending on LVR.

Up trims variable home loan rate

Digital bank Up has reduced its owner-occupier variable rate by 5 basis points, now offering 5.45% p.a. (5.45% p.a*).

As part of its "no haggling" policy, Up offers a single variable rate to everyone, without negotiation. That means the recent rate change applies equally to both new applicants and existing home loan customers.

The adjustment effectively reverses an earlier out-of-cycle increase from late 2024, which was described by Bendigo CEO Richard Farrell as a measure to evaluate price elasticity.

See also: Up to cut variable home loan rates before RBA meeting

Other movers

  • G&C Mutual Bank lowers rates on residential fixed and investment fixed home loans by as much as 0.56%.
  • The Mutual Bank reduces fixed home loan rates by up to 0.60%.
  • Unity Bank cuts residential fixed and investment fixed loan rates by as much as 0.56%.

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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
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
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • 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.
Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
Disclosure
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning

Photo from Macquarie Bank

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