Macquarie, Australia’s fifth-largest bank and lender, adjusted its variable-rate owner-occupier and investor mortgages this week.
It’s been almost three months since the bank touched its home loan rates, both variable and fixed.
As of February 2024, Macquarie Bank has written $114.83 billion in owner-occupier and investment home loans, taking 5% of the total market share.
The current sixth-largest bank, Suncorp, also moved the rates on its ‘Special Offer’ variable mortgages 5 basis points down, in a likely bid to further grow its home loan market share.
Suncorp Bank commands more than 2% of Australia’s home lending market, with a combined total of $53.04 billion that includes residential and investor loans.
That, along with the bank’s commercial loans and deposits, will be added to ANZ’s books should the Treasury greenlight the major’s $5-billion takeover of Suncorp’s banking arm.
The adjustments of the two lenders came in just a few hours before the ABS released the consumer price index (CPI) that revealed prices rose 3.6% over the 12 months to March.
The stronger-than-expected inflation rate prompted major bank economists at Westpac and CommBank to revise their forecast to a later start of RBA rate cuts.
Whether this changes the tack of mortgage lenders that are now moving variable rates down – following a series of drops on fixed rates – we’ll find out in the days to come.
In the meantime, here are the mortgage lenders we saw lowering rates.
Macquarie Bank slashes variable home loan rates
Much like how it tinkers around its term deposit rates, Macquarie Bank is gradually making adjustments to its home loan rates, trimming between 1 and 5 basis points on most of its products.
The largest cut – 10 basis points – was applied to its Basic and Offset Variable home loans with an 80% loan-to-value ratio (LVR) paying interest-only (IO).
Macquarie’s lowest rate for residential home loans is 6.14% p.a. (6.16% p.a. comparison rate*), and 6.50% p.a. (6.53% p.a. comparison rate*) for investment mortgages.
Here are the new rates of its owner-occupier mortgages paying principal and interest (P&I):
|
Product |
Change |
New rate |
Comparison rate |
|
Basic Variable OO P&I, 60% |
-1 bps |
6.14% p.a. |
6.16% p.a.* |
|
Basic Variable OO P&I, 70% |
-1 bps |
6.14% p.a. |
6.16% p.a.* |
|
Offset Variable OO P&I, 60% |
-1 bps |
6.14% p.a. |
6.39% p.a.* |
|
Offset Variable OO P&I, 70% |
-1 bps |
6.14% p.a. |
6.39% p.a.* |
Meanwhile, investors seeking variable IO loans are offered these new rates:
|
Product |
Change |
New rate |
Comparison rate |
|
Basic Variable Investment IO, 60% |
-5 bps |
6.50% p.a. |
6.53% p.a.* |
|
Basic Variable Investment IO, 70% |
-5 bps |
6.54% p.a. |
6.57% p.a.* |
|
Basic Variable Investment IO, 80% |
-10 bps |
6.65% p.a. |
6.68% p.a.* |
|
Offset Variable Investment IO, 60% |
-5 bps |
6.50% p.a. |
6.75% p.a.* |
|
Offset Variable Investment IO, 70% |
-5 bps |
6.54% p.a. |
6.79% p.a.* |
|
Offset Variable Investment IO, 80% |
-10 bps |
6.65% p.a. |
6.90% p.a.* |
Suncorp Bank moves rates south
Suncorp Bank applied a 5 basis point cut across its range of ‘Special Offer’ owner-occupier home loans.
The Back to Basics Better Together P&I with less than 60% LVR bears the bank's lowest rate of 6.13% p.a. (6.14% p.a. comparison rate*).
Meanwhile, the rates on Home Package Plus, which comes with a transaction account and Suncorp’s other products, start at 6.19% p.a. (6.54% p.a. comparison rate*).
These newly adjusted rates are available to new customers.
|
Product |
Change |
New rate |
Comparison rate |
|
Back to Basics Better Together P&I, ≤60% |
-5 bps |
6.13% p.a. |
6.14% p.a.* |
|
Back to Basics Better Together P&I, ≤70% |
-5 bps |
6.14% p.a. |
6.15% p.a.* |
|
Back to Basics Better Together P&I, 70-80% |
-5 bps |
6.14% p.a. |
6.15% p.a.* |
|
Home Package Plus P&I, ≤60% |
-5 bps |
6.19% p.a. |
6.54% p.a.* |
|
Home Package Plus P&I, ≤70% |
-5 bps |
6.24% p.a. |
6.59% p.a.* |
|
Home Package Plus P&I, 70-80% |
-5 bps |
6.25% p.a. |
6.60% p.a.* |
Illawarra Credit Union makes a big move
NSW-based Illawarra Credit Union made the biggest adjustments on variable home loan rates this week, dumping a staggering 116 basis points off its investment mortgage product.
This week’s cut has brought its The Works Package Investment Loan Variable IO from an even 8% p.a. to 6.84% p.a. (7.27% p.a. comparison rate*).
The package home loan comes with a 100% offset account, a redraw facility, and a low-rate credit card.
Owner-occupiers, meanwhile, can get this package home loan paying P&I at 6.34% p.a. (6.78% p.a. comparison rate*).
Customers looking for no-frills variable home loans may check out the newly adjusted rates on the credit union’s Bare Essential product.
- Home Loan Variable P&I: 60 basis point cut to 6.24% p.a. (6.34% p.a. comparison rate*)
- Home Loan Variable IO: 55 basis point cut to 6.74% p.a. (6.84% p.a. comparison rate*)
- Investment Loan Variable P&I: 95 basis point cut to 6.49% p.a. (6.59% p.a. comparison rate*)
- Investment Loan Variable IO: 115 basis point cut to 6.74% p.a. (6.84% p.a. comparison rate*)
Other variable rate cuts
Customer-owned Qudos Bank applied a 10 basis point cut to its No Frills variable home loan product.
The lender’s 6.34% p.a. interest rate (6.34% p.a. comparison rate*) is available to investors seeking a loan with a principal and interest payment scheme.
MOVE Bank also moved the rates on its variable mortgages for owner-occupiers and investors.
Five basis points were cut across its Everyday Home Loan Variable and Offset Home Loan Variable paying P&I, and Investment Everyday and Investment Offset paying P&I and IO.
The bank’s lowest rate offered to residents is 5.99% p.a. (6.04% p.a. comparison rate*), and 6.29% p.a. (6.34% p.a. comparison rate*) for investors.
Fixed-rate movements
A few home lenders further dropped their fixed rates this week.
Summerland Bank lowered its fixed-rate (1-5 years) investment and residential home loans by up to 30 basis points.
The Mutual Bank cut its fixed-rate (2-3 years) standard and package home loans by 20 basis points.
Bank Australia applied a 10 basis point cut across its fixed-rate (2-3 years) investment and green home loans, and basic and package owner-occupier mortgages.
Photo by wirestock on freepik
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