Macquarie delivers 5.19% p.a. fixed home loan rate

Macquarie Bank is offering a market-low fixed home loan rate of 5.19% p.a. in the latest round of interest rate cuts sweeping the mortgage market.

Macquarie Bank, Australia’s fifth largest home lender, has cut its best rate to a market-low 5.19% p.a.

The rate applies to owner-occupiers taking out basic home loans with ≤70% loan-to-value ratio (LVR) fixing for either two years (5.78% comparison rate*) or three years (5.72% comparison rate*) and making principal and interest (P&I) repayments.

It also extends to owner-occupiers choosing to link an offset account (comparison rate* 6.01% p.a. for a two-year fixed term and 5.95% p.a. for three years) although offset benefits are not available while the loan is in a fixed period.

The new market-low rate comes after Macquarie sliced 20 basis points off the range of its fixed rates on Thursday.

Here’s a look at the new owner occupier basic fixed interest rates for borrowers making P&I repayments:

Macquarie has also cut its fixed investor rates by 20 basis points with a new best rate of 5.35% p.a. (5.97% p.a. comparison rate* – two years fixed; 5.91% p.a. comparison rate* – three years fixed) for a basic ≤70% LVR home loan with P&I repayments.

Why are fixed rates falling so far?

Fixed home loan rates have been on the downhill for some months, accelerated by the Reserve Bank of Australia’s cash rate cut in February and reinvigorated by widespread expectations of another rate cut in May.

Economists at Australia’s four largest banks are united in forecasting there will also be multiple cuts to the cash rate after May.

The prospect certainly makes locking in a fixed rate unappealing to new borrowers, but that’s not stopping lenders trying to lure them anyway with rates considerably lower than their variable rate offerings.

However, it seems borrowers are well aware of the fixed rate honeytrap with the latest lending data from the Australian Bureau of Statistics showing fixed home loans accounted for for less than 2% of total lending by value in the first quarter of 2025.

But that doesn’t stop lenders from trying anyway.

Let’s check other rate movements this week.

AMP Bank trims rates by up to 0.30%

AMP Bank has shaved some of its variable home loan rates and taken a bigger slice off many of its fixed rates this week.

The majority of its rate changes are on its Professional Package residential and investor loans which come with a $349 annual fee.

The lowest Professional Package variable rate for owner-occupiers remains at 5.89% p.a. (6.24% p.a. comparison rate*) for those with ≤60% LVR and borrowing more than $1 million.

Its new lowest fixed rate for owner occupiers is 5.35% p.a. (6.76% p.a. comparison rate*) fixed for two years for borrowers with ≤80% LVR.

Here’s a look at the new Professional Package residential fixed rates for borrowers with ≤80% LVR making P&I repayments:

AMP has also dropped a couple of variable rates on its Essential home loan for investors this week with a new rate of 6.14% p.a. (6.17% p.a. comparison rate*) applying to all LVRs on loan amounts above $750,000.

Regional Australia Bank goes low

Before Macquarie Bank stole the title on Thursday, the regional bank based in Armidale NSW briefly held the mantle of the market’s lowest fixed rate.

Regional Australia Bank’s 5.25% p.a. (5.62% p.a. comparison rate*) for owner-occupiers with ≤60% LVR, making P&I repayments, and fixing for two years had its one day in the sun on Wednesday.

The bank slashed up to 45 basis points off its owner-occupier and investor fixed rates for one to five year periods.

Other rate movers

• Bank Australia has taken up to 20 basis points off the range of its fixed interest rates.
• Summerland Bank has slashed up to 40 basis points off various mortgage products, including variable and fixed rate home loans.
• Hume Bank has dropped its myBlue owner occupier and investment fixed loans by up to 34 basis points.

Image by Andrea Piacquadio via Pexels

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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.