A rate cut on the 18 February monetary policy decision appears to be gathering momentum - as of 22 January the ASX RBA rate tracker estimated a 78% chance of a 25 basis point cut.

Some lenders have already started trimming rates, with Macquarie Bank this week's largest lender to cut.

Macquarie cut fixed rates by up to 16 bps for both owner occupiers and investors, taking rates well below what's on offer at the other major banks.

It's not just fixed rates coming down either, with Teachers Mutual Group trimming back variable rates.

Macquarie Bank cuts fixed rates up to 16 bps

Australia's fifth largest home loan lender trimmed its range of fixed rates this week by up to 0.16%

The new lowest rate at Macquarie is now 5.55% p.a. on both two and three year fixed terms for owner occupiers with LVR below 70%, which is well below any advertised rate at the big four.

Here are the new rates for owner occupiers:

Product Interest rate change
1 year fixed Owner Occupier (LVR 0.01-70%) Down 16 bps to 5.69% p.a. (6.12% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 0.01-70%) Down 14 bps to 5.55% p.a. (6.05% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 0.01-70%) Down 14 bps to 5.55% p.a. (6.00% p.a. comparison rate*).
1 year fixed Owner Occupier (LVR 70.01-80%) Down 16 bps to 5.79% p.a. (6.17% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 70.01-80%) Down 14 bps to 5.65% p.a. (6.11% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 70.01-80%) Down 14 bps to 5.65% p.a. (6.06% p.a. comparison rate*).
1 year fixed Owner Occupier (LVR 80.01-95%) Down 14 bps to 6.05% p.a. (7.09% p.a. comparison rate*).
2 year fixed Owner Occupier (LVR 80.01-95%) Down 14 bps to 6.15% p.a. (7.0% p.a. comparison rate*).
3 year fixed Owner Occupier (LVR 80.01-95%) Down 14 bps to 6.15% p.a. (6.91% p.a. comparison rate*).

For investors, the lowest rate is now 5.69% p.a., also for two and three year fixed terms.

Product Interest rate change
1 year fixed Investment (LVR 0.01-70%) Down 14 bps to 5.85% p.a. (6.31% p.a. comparison rate*).
2 year fixed Investment (LVR 0.01-70%) Down 16 bps to 5.69% p.a. (6.24% p.a. comparison rate*).
3 year fixed Investment (LVR 0.01-70%) Down 16 bps to 5.69% p.a. (6.18% p.a. comparison rate*).
1 year fixed Investment (LVR 70.01-80%) Down 14 bps to 5.95% p.a. (6.65% p.a. comparison rate*).
2 year fixed Investment (LVR 70.01-80%) Down 16 bps to 5.79% p.a. (6.57% p.a. comparison rate*).
3 year fixed Investment (LVR 70.01-80%) Down 16 bps to 5.79% p.a. (6.51% p.a. comparison rate*).
1 year fixed Investment (LVR 80.01-90%) Down 14 bps to 6.35% p.a. (7.43% p.a. comparison rate*).
2 year fixed Investment (LVR 80.01-90%) Down 4 bps to 6.15% p.a. (7.30% p.a. comparison rate*).
3 year fixed Investment (LVR 80.01-90%) Down 4 bps to 6.15% p.a. (7.20% p.a. comparison rate*).

Teachers Mutual Group cut variable rates 5 bps

Just in time for the start of school term, Teachers Mutual Group trimmed variable rate home loans by 0.05%.

These rates apply at Teachers Mutual Bank, UniBank, Firefighters Mutual Bank, Health Professionals Bank and Hiver.

Product Interest rate change
Your Way Plus Home Loan OO (LVR≤60%) Down 5 bps to 6.09% p.a. (6.39% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 60-80%) Down 5 bps to 6.19% p.a. (6.49% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 80-90%) Down 5 bps to 6.64% p.a. (6.94% p.a. comparison rate*)
Your Way Plus Home Loan OO (LVR 90-95%) Down 5 bps to 6.89% p.a. (7.18% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR≤60%) Down 5 bps to 6.39% p.a. (6.69% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 60-80%) Down 5 bps to 6.49% p.a. (6.79% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 80-90%) Down 5 bps to 6.94% p.a. (7.23% p.a. comparison rate*)
Your Way Plus Home Loan Investment (LVR 90-95%) Down 5 bps to 7.19% p.a. (7.48% p.a. comparison rate*)

Other movers

  • IMB Bank cut some variable rates by up to 10 bps
  • BCU Bank cut fixed rates by up to 40 bps

Advertisement

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.

Update resultsUpdate
Filters
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.55% p.a.
6.05% p.a.
$2,855
Principal & Interest
Fixed
$0
$350
70%
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Picture by Joel Henry on Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy