Macquarie slashes home loan interest rates

The cuts were wide-ranging and varied, including a 30 basis point cut for borrowers with larger deposits, in an otherwise quiet week for rate changes.

The home loan with the biggest rate cut was the basic variable product for owner occupiers, paying interest-only, with a 60% loan-to-value ratio.

It was cut by 30 basis points down to 2.59% p.a. (2.59% p.a. comparison rate*).

All up there were about 30 individual rate changes, but a handful of other cuts included:

• Basic Variable Owner Occ P&I 60%: 15 basis point cut to 2.14% p.a. (2.14% p.a. comparison rate*)
• Basic Variable Owner Occ P&I 80%: 15 basis point cut to 2.24% p.a. (2.24% p.a. comparison rate*)
• Basic Variable Inv P&I 60%: 10 basis point cut to 2.29% p.a. (2.29% p.a. comparison rate*)
• Basic Variable Inv P&I 80%: 10 basis point cut to 2.49% p.a. (2.49% p.a. comparison rate*)

A noteworthy feature of these home loans is that the comparison rates are the same as the advertised rates - this implies there are little to no extra fees or other costs associated with the home loan.

Elsewhere, it was a pretty quiet week on the home loan front, particularly for rate cuts.

BankVic introduced a new 2 year introductory variable home loan for owner occupiers. 

The rate is 1.95% p.a. (2.92% p.a. comparison rate*).

Newcastle Permanent slashed its 'Real Deal' home loan as a special offer for owner occupiers with 80% LVR paying P&I.

The rate is 10 basis points lower, now 2.49% p.a. (2.53% p.a. comparison rate*).

Meanwhile, Heritage Bank increased rates on a handful of products by 10 basis points. Some included:

• Residential Fixed 3 Years: Now 2.29% p.a. (4.07% p.a. comparison rate*)
• Residential Fixed 5 Years: Now 2.69% p.a. (3.91% p.a. comparison rate*)
• Investment Fixed 3 Years: Now 2.49% p.a. (4.51% p.a. comparison rate*)
• Investment Fixed 5 Years: Now 2.99% p.a. (4.35% p.a. comparison rate*)

Heritage's fixed home loans are for borrowers with up to 90% LVR. 

The reason for the gulf between the advertised rate and comparison rate is because of a $600 application fee, and an $8 per month loan service fee, while the revert rate may also factor.

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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.

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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

Product Features

• Fast turnaround times, can meet 30-day settlement
• For purchase and refinance, min 20% deposit
• No ongoing or monthly fees, add offset for 0.10%

Monthly repayments:$1,449

1.85%Advertised Rate (p.a.)

2.21%Comparison Rate (p.a.)

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