The new lowest owner occupier home loan rate available at Macquarie is now 5.19% p.a. (5.78% p.a. comparison rate*) for two years fixed with up to 70% LVR.

That's the lowest rate on our database, topping yesterday's rate cuts from Regional Australia Bank which dropped two year fixed rates to 5.25% p.a. (5.62% p.a. comparison rate) for borrowers with an LVR below 60%.

Fixed rates have been going down since well before the February cash rate cut, beginning after the sudden drop in bond yields that happened mid last year, but the decline has accelerated with growing expectations the RBA will cut again, by 25 bps at least, in May.

The likelihood of further rate cuts in the near future will likely prompt many borrowers to choose not to fix, although for now the fixed rates on market are generally significantly lower than variable ones, with a couple of rate cuts already priced in. 

Should the RBA cut by 25 bps in May, the advertised rate on the lowest variable rate on our database - 5.49% p.a. (5.69% p.a. comparison rate*) First Option Bank Discounted Simple Home Loan for LVR up to 60% -will remain higher than this new rate from Macquarie even if the cut is passed on in full.

If the cut is 0.50% though, as 62% of traders are expecting, these fixed rates may quickly start to look much less attractive - as ever, much will depend on the outcome of the upcoming monetary policy meeting.

The March quarter CPI data (set for release on 30 April) is likely to be pivotal, as of course is the current market turmoil in Australia and overseas, although Michele Bullock recently suggested the RBA may be unlikely to hit the panic button.

"We're not currently seeing the same degree of impact as [in] previous market events like in 2008 for example," the RBA governor said in a speech at the Chief Executive Women dinner in Melbourne earlier this month.

"The Australian financial system is strong and well placed to absorb shocks from abroad."

For now, here were the major movements in the home loan market in the working week ending 24 April:

Macquarie cuts fixed rates by up to 20 bps

These are the new P&I rates for owner occupiers:

Product Rate change
Basic one year fixed (LVR 0.01-70%) Down 20 bps to 5.29% p.a. (5.85% p.a. comparison rate*)
Basic two year fixed (LVR 0.01-70%) Down 20 bps to 5.19% p.a. (5.78% p.a. comparison rate*)
Basic three year fixed (LVR 0.01-70%) Down 20 bps to 5.19% p.a. (5.72% p.a. comparison rate*)
Basic four year fixed (LVR 0.01-70%) Down 20 bps to 5.39% p.a. (5.73% p.a. comparison rate*)
Basic five year fixed (LVR 0.01-70%) Down 20 bps to 5.39% p.a. (5.70% p.a. comparison rate*)
Basic one year fixed (LVR 70.01-80%) Down 20 bps to 5.39% p.a. (5.91% p.a. comparison rate*)
Basic two year fixed (LVR 70.01-80%) Down 20 bps to 5.29% p.a. (5.84% p.a. comparison rate*)
Basic three year fixed (LVR 70.01-80%) Down 20 bps to 5.29% p.a. (5.78% p.a. comparison rate*)
Basic four year fixed (LVR 70.01-80%) Down 20 bps to 5.49% p.a. (5.80% p.a. comparison rate*)
Basic five year fixed (LVR 70.01-80%) Down 20 bps to 5.49% p.a. (5.77% p.a. comparison rate*)
Basic one year fixed (LVR 80.01-95%) Down 20 bps to 5.65% p.a. (6.83% p.a. comparison rate*)
Basic two year fixed (LVR 80.01-95%) Down 20 bps to 5.79% p.a. (6.73% p.a. comparison rate*)
Basic three year fixed (LVR 80.01-95%) Down 20 bps to 5.79% p.a. (6.63% p.a. comparison rate*)
Basic four year fixed (LVR 80.01-95%) Down 20 bps to 5.99% p.a. (6.61% p.a. comparison rate*)
Basic five year fixed (LVR 80.01-95%) Down 20 bps to 5.99% p.a. (6.54% p.a. comparison rate*)
Offset one year fixed (LVR 0.01-70%) Down 20 bps to 5.29% p.a. (6.08% p.a. comparison rate*)
Offset two year fixed (LVR 0.01-70%) Down 20 bps to 5.19% p.a. (6.01% p.a. comparison rate*)
Offset three year fixed (LVR 0.01-70%) Down 20 bps to 5.19% p.a. (5.95% p.a. comparison rate*)
Offset four year fixed (LVR 0.01-70%) Down 20 bps to 5.39% p.a. (5.96% p.a. comparison rate*)
Offset five year fixed (LVR 0.01-70%) Down 20 bps to 5.39% p.a. (5.93% p.a. comparison rate*)
Offset one year fixed (LVR 70.01-80%) Down 20 bps to 5.39% p.a. (6.14% p.a. comparison rate*)
Offset two year fixed (LVR 70.01-80%) Down 20 bps to 5.29% p.a. (6.07% p.a. comparison rate*)
Offset three year fixed (LVR 70.01-80%) Down 20 bps to 5.29% p.a. (6.01% p.a. comparison rate*)
Offset four year fixed (LVR 70.01-80%) Down 20 bps to 5.49% p.a. (6.03% p.a. comparison rate*)
Offset five year fixed (LVR 70.01-80%) Down 20 bps to 5.49% p.a. (6.00% p.a. comparison rate*)
Offset one year fixed (LVR 80.01-95%) Down 20 bps to 5.65% p.a. (7.05% p.a. comparison rate*)
Offset two year fixed (LVR 80.01-95%) Down 20 bps to 5.79% p.a. (6.95% p.a. comparison rate*)
Offset three year fixed (LVR 80.01-95%) Down 20 bps to 5.79% p.a. (6.85% p.a. comparison rate*)
Offset four year fixed (LVR 80.01-95%) Down 20 bps to 5.99% p.a. (6.83% p.a. comparison rate*)
Offset five year fixed (LVR 80.01-95%) Down 20 bps to 5.99% p.a. (6.76% p.a. comparison rate*)

And for investors:

Product Rate change
Basic one year fixed (LVR 0.01-70%) Down 20 bps to 5.45% p.a. (6.05% p.a. comparison rate*)
Basic two year fixed (LVR 0.01-70%) Down 20 bps to 5.35% p.a. (5.97% p.a. comparison rate*)
Basic three year fixed (LVR 0.01-70%) Down 20 bps to 5.35% p.a. (5.91% p.a. comparison rate*)
Basic four year fixed (LVR 0.01-70%) Down 20 bps to 5.55% p.a. (5.92% p.a. comparison rate*)
Basic five year fixed (LVR 0.01-70%) Down 20 bps to 5.55% p.a. (5.88% p.a. comparison rate*)
Basic one year fixed (LVR 70.01-80%) Down 20 bps to 5.55% p.a. (6.16% p.a. comparison rate*)
Basic two year fixed (LVR 70.01-80%) Down 20 bps to 5.45% p.a. (6.08% p.a. comparison rate*)
Basic three year fixed (LVR 70.01-80%) Down 20 bps to 5.45% p.a. (6.01% p.a. comparison rate*)
Basic four year fixed (LVR 70.01-80%) Down 20 bps to 5.65% p.a. (6.03% p.a. comparison rate*)
Basic five year fixed (LVR 70.01-80%) Down 20 bps to 5.65% p.a. (5.99% p.a. comparison rate*)
Basic one year fixed (LVR 80.01-90%) Down 20 bps to 5.95% p.a. (6.95% p.a. comparison rate*)
Basic two year fixed (LVR 80.01-90%) Down 20 bps to 5.79% p.a. (6.81% p.a. comparison rate*)
Basic three year fixed (LVR 80.01-90%) Down 20 bps to 5.79% p.a. (6.70% p.a. comparison rate*)
Basic four year fixed (LVR 80.01-90%) Down 20 bps to 5.89% p.a. (6.64% p.a. comparison rate*)
Basic five year fixed (LVR 80.01-90%) Down 20 bps to 5.89% p.a. (6.55% p.a. comparison rate*)
Offset one year fixed (LVR 0.01-70%) Down 20 bps to 5.45% p.a. (6.28% p.a. comparison rate*)
Offset two year fixed (LVR 0.01-70%) Down 20 bps to 5.35% p.a. (6.20% p.a. comparison rate*)
Offset three year fixed (LVR 0.01-70%) Down 20 bps to 5.35% p.a. (6.13% p.a. comparison rate*)
Offset four year fixed (LVR 0.01-70%) Down 20 bps to 5.55% p.a. (6.15% p.a. comparison rate*)
Offset five year fixed (LVR 0.01-70%) Down 20 bps to 5.55% p.a. (6.11% p.a. comparison rate*)
Offset one year fixed (LVR 70.01-80%) Down 20 bps to 5.55% p.a. (6.38% p.a. comparison rate*)
Offset two year fixed (LVR 70.01-80%) Down 20 bps to 5.45% p.a. (6.30% p.a. comparison rate*)
Offset three year fixed (LVR 70.01-80%) Down 20 bps to 5.45% p.a. (6.24% p.a. comparison rate*)
Offset four year fixed (LVR 70.01-80%) Down 20 bps to 5.65% p.a. (6.25% p.a. comparison rate*)
Offset five year fixed (LVR 70.01-80%) Down 20 bps to 5.65% p.a. (6.21% p.a. comparison rate*)
Offset one year fixed (LVR 80.01-90%) Down 20 bps to 5.95% p.a. (7.17% p.a. comparison rate*)
Offset two year fixed (LVR 80.01-90%) Down 20 bps to 5.79% p.a. (7.03% p.a. comparison rate*)
Offset three year fixed (LVR 80.01-90%) Down 20 bps to 5.79% p.a. (6.92% p.a. comparison rate*)
Offset four year fixed (LVR 80.01-90%) Down 20 bps to 5.89% p.a. (6.86% p.a. comparison rate*)
Offset five year fixed (LVR 80.01-90%) Down 20 bps to 5.89% p.a. (6.77% p.a. comparison rate*)

Read more: Macquarie Bank home loans

Regional Australia Bank cuts by up to 36 bps

Regional Australia Bank's Wednesday cuts saw it briefly offer the lowest fixed rate on market (5.25% p.a., 5.66% p.a. comparison rate for two year fixed terms up to 60% LVR).

Rates were slashed across the board for both investors and owner occupiers, and while Macquarie's new rates are slightly lower, Regional Australia Bank still has the lowest rates among customer owned banks.

As it stands, Macquarie Bank also isn't among the participating lenders on the Home Guarantee Scheme, so if you're a first home buyer looking to take advantage, Regional Australia Bank has the lowest rates available to you.

Read more: Regional Australia Bank new home loan rates

Other movers

  • AMP cut fixed rates for both owner occupiers and investors by up to 30 bps. Its new lowest fixed rate for owner occupiers is 5.35% p.a. (6.76% p.a. comparison rate*) on three year fixed terms. That applies to borrowers with an LVR below 80% on AMP's Professional Package, which has a $349 annual fee, but allows up to 10 offset accounts.
  • Firstmac hiked variable rates on its Green and Solar loans by 10 bps.
  • Bank Australia, Aussie, Hume Bank and Summerland Bank all also cut fixed rates, with Summerland dropping select variable rates as well

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 TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • 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
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
  • 100% owned by Commbank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • 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
5.84% p.a.
6.08% p.a.
$2,947
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 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 Alonso Reyes on Unsplash



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