Some of Australia’s largest banks led the way in this week’s swathe of home loan rate cuts.
Macquarie Bank slashed fixed rates to as low as 5.39% p.a. this week, while Westpac introduced a 5.84% p.a. variable rate for eligible refinancers.
ANZ, meanwhile, took as much as 25 basis points off its one year fixed home loan rates.
It came as the final stragglers officially passed on the Reserve Bank of Australia’s (RBA) February rate cut and attention turned to the central bank’s April meeting.
The RBA board meets again on 31 March, with a rate decision set for 1 April – but those hoping for a consecutive cut might be left for fools.
There’s no one data point that appears to suggest another cut is needed to bolster the economy.
Unemployment figures released this week saw the jobs market remaining relatively steady while economists will be pouring over February’s monthly inflation figures when they drop on Wednesday.
All that is to say, we might be in the eye of the storm. But lenders appear to be bracing for wind once more.
These lenders slashed home loan interest rates this week:
Macquarie Bank dropped fixed rates to as low as 5.39% p.a.
Having passed on the rate cut on 28 February, Macquarie’s pricing team was back on the ball this week, cutting up to 20 basis points from the bank’s fixed rate lineup.
The bank’s new rates start at 5.39% p.a. For fixed rate periods of two or three years.
That’s just 10 basis points higher than the market-leading rate offered by Australian Mutual Bank – 5.29% p.a. for eligible owner-occupiers fixing for three years (comparison rate* 6.01% p.a.).
Here are Macquarie Bank’s latest rates offered to owner-occupiers:
| Fixed period | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| One year | <70% | -20bp | 5.49% | 5.87% |
| 70-80% | -20bp | 5.59% | 5.93% | |
| 80-95% | -20bp | 5.85% | 6.85% | |
| Two years | <70% | -16bp | 5.39% | 5.82% |
| 70-80% | -16bp | 5.49% | 5.88% | |
| 80-95% | -16bp | 5.99% | 6.77% | |
| Three years | <70% | -16bp | 5.39% | 5.77% |
| 70-80% | -16bp | 5.49% | 5.84% | |
| 80-95% | -16bp | 5.99% | 6.69% | |
| Four years | <70% | -10bp | 5.59% | 5.81% |
| 70-80% | -10bp | 5.69% | 5.87% | |
| 80-95% | -10bp | 6.19% | 6.69% | |
| Five years | <70% | -10bp | 5.59% | 5.78% |
| 70-80% | -10bp | 5.69% | 5.86% | |
| 80-95% | -10bp | 6.19% | 6.63% |
Meanwhile, investors making principal and interest repayments could find their attention caught by these new fixed rates:
| Fixed period | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| One year | <70% | -20bp | 5.65% | 6.07% |
| 70-80% | -20bp | 5.75% | 6.18% | |
| 80-90% | -20bp | 6.15% | 6.97% | |
| Two years | <70% | -14bp | 5.55% | 6.01% |
| 70-80% | -14bp | 5.65% | 6.12% | |
| 80-90% | -16bp | 5.99% | 6.85% | |
| Three years | <70% | -14bp | 5.55% | 5.96% |
| 70-80% | -14bp | 5.65% | 6.07% | |
| 80-90% | -16bp | 5.99% | 6.76% | |
| Four years | <70% | -10bp | 5.75% | 5.99% |
| 70-80% | -10bp | 5.85% | 6.10% | |
| 80-90% | -10bp | 6.09% | 6.71% | |
| Five years | <70% | -10bp | 5.75% | 5.97% |
| 70-80% | -10bp | 5.85% | 6.07% | |
| 80-90% | -10bp | 6.09% | 6.64% |
ANZ cuts one year fixed rates
The smallest of the big four made moves on its shortest fixed term option this week, dropping one year fixed rates to as low as 5.89% p.a. for owner-occupiers.
Changes include:
| Borrower | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| Owner-occupier | ≤80% | -25bp | 5.89% | 6.66% |
| 80-90% | -25bp | 6.34% | 6.88% | |
| Investor (P&I) | ≤80% | -15bp | 6.09% | 7.21% |
| 80-90% | -15bp | 6.54% | 7.44% |
Westpac offers refinancers a variable rate of 5.84% p.a.
Westpac’s digital home loan offering has adopted a new carrot – a rate of 5.84% p.a. for eligible refinancers (comparison rate* 5.85% p.a.).
To realise the rates, a borrower must be refinancing a home loan directly with the bank via its website and have a loan-to-value ratio (LVR) of 70% or less.
Read more about Westpac’s latest offer in our previous comprehensive coverage.
Small mutual bank slashes variable rates to under 5.75% p.a.
Finally, often overlooked mutual lender Queensland Country Bank unveiled an eye-catching variable rate this week – 5.74% p.a. for owner-occupiers with LVRs as high as 95% (comparison rate* 6.10% p.a.).
That’s advertised on its Special Variable Package home loan, which comes with an offset account and a fee-free credit card at the cost of a $395 annual fee.
Borrowers looking for an interest only home loan could realise the same rate, while investors face an interest rate of 5.94% p.a. (comparison rate* 6.29% p.a.).
Queensland Country Bank is also one of the 36 lenders that participate in the Home Guarantee Scheme, meaning first home buyers or single parents with deposits of less than 20% might be able to dodge lenders mortgage insurance (LMI).
Other movers
In addition to the big hitters, plenty of smaller market fish took the knife to fixed rates this week, perhaps in anticipation of further RBA cuts.
Changes included:
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
5.79% p.a. |
5.83% p.a. |
$2,931 |
Principal & Interest |
Variable |
$0 |
$530 |
90% |
|
Promoted |
Disclosure | ||||||||||
|
5.84% p.a. |
5.86% p.a. |
$2,947 |
Principal & Interest |
Variable |
$0 |
$250 |
60% |
|
Promoted |
Disclosure | ||||||||||
|
5.74% p.a. |
5.65% p.a. |
$2,915 |
Principal & Interest |
Variable |
$0 |
$0 |
80% |
100% owned by Commbank |
|
|
Disclosure |
Important Information and Comparison Rate Warning
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