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.
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
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Photo from Macquarie Bank
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