Macquarie Bank is adjusting its rates lower after a surprise move to raise its fixed home loan rates in October.

At the time, Macquarie instituted a 30-basis point rise across the board when the rest of the market was almost universally dropping fixed rates in anticipation of a forthcoming cut to the cash rate.

Tuesday's cuts see Macquarie lower rates largely by 14 to 16 basis points, putting them back on a more competitive footing.

Macquarie back among market low rates

The bank's fixed rates had been among the market's lowest when Macquarie made the curious move to raise them last year.

The new lowest fixed rate on offer is 5.55% p.a. for a basic owner occupier fixed loan for borrowers with ≤70% loan-to-value ratio (LVR) making principal and interest (P&I) repayments and fixing for either two (6.05% p.a. comparison rate*) or three years (6.00% p.a.  comparison rate*).

It's the lowest advertised fixed rate among the larger banks and bettered only by special green loan fixed rates on the wider market.

Same rates for Basic and Offset fixed loans

The new fixed interest rates are the same for Macquarie's Basic and Offset fixed home loan products although offset benefits are not available when the linked loan account is at a fixed rate.

These can kick in when the loan comes off its fixed period.

Here are the new rates below:

Product Change (%) New rate Comparison rate* Comparison rate* with Offset
Basic Fixed ≤70% LVR 1 year -0.16 5.69% p.a. 6.12% p.a.* 6.34% p.a.*
Basic Fixed ≤70% LVR 2 years -0.14 5.55% p.a. 6.05% p.a.* 6.28% p.a.*
Basic Fixed ≤70% LVR 3 years -0.14 5.55% p.a. 6.00% p.a.* 6.22% p.a.*
Basic Fixed ≤80% LVR 1 year -0.16 5.79% p.a. 6.17% p.a.* 6.40% p.a.*
Basic Fixed ≤80% LVR 2 years -0.14 5.65% p.a. 6.11% p.a.* 6.33% p.a.*
Basic Fixed ≤80% LVR 3 years -0.14 5.65% p.a. 6.06% p.a.* 6.29% p.a.*
Basic Fixed ≤95% LVR 1 year -0.14 6.05% p.a. 7.09% p.a.* 7.31% p.a.*
Basic Fixed ≤95% LVR 2 years -0.14 6.15% p.a. 7.00% p.a.* 7.22% p.a.*
Basic Fixed ≤95% LVR 3 years -0.14 6.15% p.a. 6.91% p.a.* 7.13% p.a.*

Note: Comparison rates are higher for offset home loans as they attract an annual fee.

Investor fixed rates also cut

Macquarie has also cut its rates across the board for fixed rate loans for investors making either P&I or interest only (IO) repayments.

The best new fixed rate for investors is 5.69% p.a. for borrowers with ≤70% LVR paying P&I and fixing for two years (6.24% p.a. comparison rate*) or three years (6.18% p.a. comparison rate*).

Again, the rates are the same for investors choosing an offset home loan option although no offset benefits are available while the loan is in a fixed rate period.

Investors must also have a maximum LVR of ≤90%.

Are borrowers tempted by fixed rates?

Home lenders have been dropping fixed rates across the market over the past six months or so, likely in a bid to lure lenders to locking in to enticing fixed rates before a cut in the Reserve Bank cash rate.

At the time, a cash rate cut had been widely anticipated by the end of 2024 although markets have pushed out the forecast to sometime in first half of 2025.

But it seems very few borrowers have taken the bait.

Australian Bureau of Statistics' latest lending data, released in November 2024, shows new fixed-rate lending has plunged coming out of the pandemic and currently accounts for just 2.59% of new home loans. 

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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.

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

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