Macquarie Bank is the among the raft of home lenders continuing to chop fixed rates this week.

It's not nibbling at the edges either, slashing some interest only (IO) rates by 50 basis points, following up the bold cuts to its fixed rates in mid-August.

Macquarie has dropped rates again on its Basic and Offset Home Loan Fixed for owner occupiers and investors.

Here's some of the new Basic owner occupier rates for borrowers making principal and interest (P&I) repayments:

Product Change (%) New rate Comparison rate*
Basic Fixed LVR ≤70% 1 year -0.04 5.75% p.a. 6.12% p.a.
Basic Fixed LVR ≤70% 2 year -0.2 5.39% p.a. 6.02% p.a.
Basic Fixed LVR ≤70% 3 year -0.2 5.39% p.a. 5.59% p.a.
Basic Fixed LVR ≤70% 4 year -0.4 5.39% p.a. 5.89% p.a.
Basic Fixed LVR ≤70% 5 year -0.4 5.39% p.a. 5.84% p.a.

The rates increase by 10 basis points for loan-to-value ratio (LVR) ≤ 80% and 50 basis points for LVR ≤ 95%.

Offset fixed loans come with the same rates as the basic product but higher comparison rates.

HSBC goes hard on variable rates

While fixed rate cutting has almost become passe on the mortgage market, the Hong Kong-based bank has taken the axe to some of its variable rates. New borrowers will no doubt be heartened to see a variable rate for owner occupiers under the 6% mark, with HSBC's Home Value loan at 5.99% p.a. (5.99% p.a. comparison rate*) for LVR 60% or less.

The special offer rate goes up to 6.19% p.a. (6.19% p.a. comparison rate*) for investors with LVR 60% or less.

Here's a look at the new Home Value promotional offer rates for owner occupiers paying P&I:

Product Change (%) New rate Comparison rate*
LVR 60% or less -0.05 5.99% p.a. 5.99% p.a.
LVR 60-70% -0.05 6.04% p.a. 6.04% p.a.
LVR 70-80% -0.05 6.09% p.a. 6.09% p.a.
LVR above 80% -0.05 6.39% p.a. 6.39% p.a.

Interest rates on HSBC Standard Variable Rate Package loans are 15 basis points higher and come with offset and redraw facilities for an annual fee of $390 a year.

HSBC has also taken another five to 10 basis points off a raft of other products including its Package, Home Equity, and Home Smart loans.

Bank Australia cuts up to 90 bp

The former credit union for CSIRO staff has made some serious cuts to many of its fixed rates this week.

Its best Basic Fixed rate is now 5.54% p.a. for LVR ≤80% loans fixed for two years (6.07% p.a. comparison rate*), three years (6.02% p.a. comparison rate*), or five years (5.93% p.a. comparison rate*).

Bank Australia's Premium Package fixed rates have also undergone a major haircut, with rates for longer terms being cut by up to 70 basis points for owner occupiers.

Its Clean Energy Eco Plus Home Loan fixed for three years is also sporting an impressive 5.24% p.a. (6.24% p.a. comparison rate*) for owner occupiers with LVR ≤90%.

Eco Plus Clean Energy Home Loans are supported by the federal government-backed Clean Energy Finance Corporation and are available to eligible borrowers only.

To qualify for a green home loan with Bank Australia you generally need to have a 7- or 7.5-star NatHERS rating. 

See Also: Green Home Loan Guide

RACQ Bank drops variable rates

The Queensland-based bank has taken 10 basis points off rates for its Fair Dinkum, Mortgage Saver, and Mortgage Breaker variable home loans.

RACQ Bank's best variable rate is now 5.89% p.a. (5.89% p.a. comparison rate*) for its Fair Dinkum loan that comes without redraw or offset facilities.

The rate goes up 10 basis points for the Mortgage Saver product which offers a redraw and other 10 basis points for Mortgage Breaker that includes both.

None of the variable loans come with establishment, annual, or monthly fees and all offer loan terms up to 40 years.

As well as the variable rate cuts, RACQ Bank has also cut some investment fixed rates by up to 50 basis points.

Other rate cutters

  • Australian Mutual Bank has taken up to 45 basis points off its Fixed, Investment Fixed, and First Home Buyer Fixed rates this week.

Its First Home Buyer special offer allows newcomers to the housing market to lock in a rate of 5.49% p.a. (6.29% p.a.) fixed for two years with no establishment or valuation fees.

  • Not to be confused with the above, The Mutual Bank has slashed up to 40 basis points off its Package Home Loan Premium and Standard Fixed loans for both owner occupiers and investors.

Owner occupiers taking out a Package Home Loan can now get a rate of 5.59% p.a. (7.63% p.a. comparison rate*) locking in for two years.

  • G&C Mutual Bank has dropped its Residential and Investment Fixed rates by up to 30 basis points.

Its best new rate is 5.7% p.a. (5.76% p.a. comparison rate*) for owner occupiers making P&I repayments fixed for three years.

  • Illawarra Credit Union has taken the knife to a raft of variable and fixed rate products this week, including its Works Package and Bare Essentials loans for owner occupiers and investors.

Its best variable rate is 6.14% p.a. (6.24% p.a. comparison rate*) for its Bare Essentials loan for owner occupiers paying P&I.

  • Finally, BankVic, the bank for police, emergency, and health workers, had dropped its Offset and Offset Police variable rate home loans by 10 basis points.

The Offset rate is now 6.20% p.a. (6.20% p.a. comparison rate*) and comes with no establishment or ongoing fees and offers lenders mortgage insurance (LMI) waivers for LVRs up to 90%.

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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
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 Brian Babb on Unsplash



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