Macquarie Bank made some big moves on Tuesday to slash its fixed rate home loan offerings for both owner occupiers and investors.
Australia’s fifth-largest home lender announced cuts of between 46 and 76 basis points across a wide range of its fixed rate products.
The new rate on its basic one-year fixed rate home loan for owner occupiers with a loan-to-value ratio (LVR) of 80% or less making principal and interest (P&I) repayments is 5.99% p.a. (6.19% p.a. comparison rate*).
Rates for 70% LVR loans dropped to 5.79% p.a. fixed for two to five years (with comparison rates* ranging from 6.14% p.a. to 6.01% p.a. depending on the loan term).
Fixed loans with offset accounts are also offering the same lowered rates as Macquarie’s basic loans, although come with a $248 annual fee that inflates their comparison rates.
Borrowers also can’t access any offset benefits while the linked loan account is on a fixed rate.
This week's new low fixed rates send a signal Macquarie is out to grow its 5.3% share of the home lending market.
BoQ cuts fixed rates by up to 0.50%
Australia’s sixth largest home lender, Bank of Queensland, also joined the fixed rate cutting trend on Friday, dropping its rates on a range of residential and investment loans.
BoQ’s best new fixed owner occupier rate is its three-year discount rate of 5.74% p.a. (6.33% p.a. comparison rate*), offering a discount on the regular three-year fixed rate of 6.09% p.a. (6.43% p.a. comparison rate*).
The BoQ discount rates apply for a limited time to new-to-bank lending only and are not available to refinancers with existing BoQ loans (including the bank’s other brands ME Bank and Virgin Money Australia).
They’re also available for LVRs up to 90%.
The new rates for owner occupiers making P&I repayments are:
| Product | Change (%) | New rate | Comparison rate* |
| 2 years fixed | -0.5 | 6.14% p.a. | 6.46% p.a. |
| 2 years fixed discount | -0.5 | 5.79% p.a. | 6.39% p.a. |
| 3 years fixed | -0.45 | 6.09% p.a. | 6.43% p.a. |
| 3 years fixed discount | -0.45 | 5.74% p.a. | 6.33% p.a. |
| 4 years fixed | -0.30 | 6.49% p.a. | 6.55% p.a. |
| 4 years fixed discount | -0.30 | 6.14% p.a. | 6.42% p.a. |
| 5 years fixed | -0.40 | 6.49% p.a. | 6.56% p.a. |
| 5 years fixed discount | -0.40 | 6.14% p.a. | 6.40% p.a. |
MOVE shakes downwards
Finally, MOVE Bank also dropped a wide range of its Everyday and Offset variable and fixed home loans for both owner occupiers and investors this week by up to 30 basis points.
A few of MOVE’s fixed owner occupier home loans now join the sub-6% club including its Everyday variable home loan with P&I repayments fixed for one year at 5.99% p.a. (6.04% p.a. comparison rate*).
MOVE also applies the same rate for LVRs up to 95% for owner occupiers.
But MOVE’s Everyday home loans come with a proviso: to get the advertised rate, borrowers must deposit $1,500 a month into a MOVE transaction account.
MOVE’s Everyday Variable home loan rate for owner occupiers is also under 6% for <80% LVR loans, dropping 10 basis points to 5.99% p.a. (6.04% p.a. comparison rate*).
It comes with an unlimited free redraw facility and no monthly account keeping fees.
MOVE Bank's Everyday variable rates are as follows:
| Product | Change (%) | New rate | Comparison rate* |
| Everyday Variable P&I ≤80% LVR | -0.1 | 5.99% p.a. | 6.04% p.a. |
| Everyday Variable P&I 80-90% LVR | -0.1 | 6.14% p.a. | 6.19% p.a. |
| Everyday Variable P&I 90-95% LVR | -0.1 | 6.29% p.a. | 6.34% p.a. |
The biggest rate drops came with the bank’s Offset fixed home loans.
The new lowest rate is 6.04% p.a. (6.20% p.a. comparison rate*) for owner occupiers fixing for three years, a drop of 30 basis points.
MOVE's Offset fixed home loans come with a 100% offset account and no account keeping fees.
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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 | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 90% | Featured 4.6 Star Customer Ratings |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
| |||||||||
6.09% p.a. | 6.11% p.a. | $2,421 | Principal & Interest | Variable | $0 | $250 | 60% | Featured Unlimited Redraws |
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Image by Clay Banks on Unsplash
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