Macquarie Bank made some big moves on Tuesday to slash its fixed rate home loan offerings for both owner occupiers and investors.

Australia’s fifth-largest home lender announced cuts of between 46 and 76 basis points across a wide range of its fixed rate products.

The new rate on its basic one-year fixed rate home loan for owner occupiers with a loan-to-value ratio (LVR) of 80% or less making principal and interest (P&I) repayments is 5.99% p.a. (6.19% p.a. comparison rate*).

Rates for 70% LVR loans dropped to 5.79% p.a. fixed for two to five years (with comparison rates* ranging from 6.14% p.a. to 6.01% p.a. depending on the loan term).

Fixed loans with offset accounts are also offering the same lowered rates as Macquarie’s basic loans, although come with a $248 annual fee that inflates their comparison rates.

Borrowers also can’t access any offset benefits while the linked loan account is on a fixed rate.

This week's new low fixed rates send a signal Macquarie is out to grow its 5.3% share of the home lending market.

BoQ cuts fixed rates by up to 0.50%

Australia’s sixth largest home lender, Bank of Queensland, also joined the fixed rate cutting trend on Friday, dropping its rates on a range of residential and investment loans.

BoQ’s best new fixed owner occupier rate is its three-year discount rate of 5.74% p.a. (6.33% p.a. comparison rate*), offering a discount on the regular three-year fixed rate of 6.09% p.a. (6.43% p.a. comparison rate*).

The BoQ discount rates apply for a limited time to new-to-bank lending only and are not available to refinancers with existing BoQ loans (including the bank’s other brands ME Bank and Virgin Money Australia).

They’re also available for LVRs up to 90%.

The new rates for owner occupiers making P&I repayments are:

Product Change (%) New rate Comparison rate*
2 years fixed -0.5 6.14% p.a. 6.46% p.a.
2 years fixed discount -0.5 5.79% p.a. 6.39% p.a.
3 years fixed -0.45 6.09% p.a. 6.43% p.a.
3 years fixed discount -0.45 5.74% p.a. 6.33% p.a.
4 years fixed -0.30 6.49% p.a. 6.55% p.a.
4 years fixed discount -0.30 6.14% p.a. 6.42% p.a.
5 years fixed -0.40 6.49% p.a. 6.56% p.a.
5 years fixed discount -0.40 6.14% p.a. 6.40% p.a.

MOVE shakes downwards

Finally, MOVE Bank also dropped a wide range of its Everyday and Offset variable and fixed home loans for both owner occupiers and investors this week by up to 30 basis points.

A few of MOVE’s fixed owner occupier home loans now join the sub-6% club including its Everyday variable home loan with P&I repayments fixed for one year at 5.99% p.a. (6.04% p.a. comparison rate*).

MOVE also applies the same rate for LVRs up to 95% for owner occupiers.

But MOVE’s Everyday home loans come with a proviso: to get the advertised rate, borrowers must deposit $1,500 a month into a MOVE transaction account.

MOVE’s Everyday Variable home loan rate for owner occupiers is also under 6% for <80% LVR loans, dropping 10 basis points to 5.99% p.a. (6.04% p.a. comparison rate*).

It comes with an unlimited free redraw facility and no monthly account keeping fees.

MOVE Bank's Everyday variable rates are as follows:

Product Change (%) New rate Comparison rate*
Everyday Variable P&I ≤80% LVR -0.1 5.99% p.a. 6.04% p.a.
Everyday Variable P&I 80-90% LVR -0.1 6.14% p.a. 6.19% p.a.
Everyday Variable P&I 90-95% LVR -0.1 6.29% p.a. 6.34% p.a.

The biggest rate drops came with the bank’s Offset fixed home loans.

The new lowest rate is 6.04% p.a. (6.20% p.a. comparison rate*) for owner occupiers fixing for three years, a drop of 30 basis points.

MOVE's Offset fixed home loans come with a 100% offset account and no account keeping fees.

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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.
6.06% 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
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 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

Image by Clay Banks on Unsplash



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