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Macquarie ramps up fixed rate cuts with new lowest fixed home loan rate of 5.19%
Australia’s fifth biggest lender, Macquarie Bank, has today slashed fixed-rate loans, taking its 2- and 3-year interest rates to the lowest in the market at 5.19%.
24 Apr 2025
Australia’s fifth biggest lender, Macquarie Bank, has today slashed fixed-rate loans, taking its 2- and 3-year interest rates to the lowest in the market at 5.19%.
Macquarie Bank’s new lowest fixed home loan rates
Macquarie Bank’s latest fixed rate cut will provide borrowers with the lowest rate in the market at 5.19%.
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| Term | New rate from |
Change % pts |
|---|---|---|
| 1-year | 5.29% | -0.2 |
| 2-year | 5.19% | -0.2 |
| 3-year | 5.19% | -0.2 |
| 4-year | 5.39% | -0.2 |
| 5-year | 5.39% | -0.2 |
Source: canstar.com.au. Notes: based on owner occupied loans with principal and interest repayments. LVR requirements apply.
Canstar’s analysis shows 18 banks have cut at least one fixed home loan rate in the past month, including big four bank NAB on April 11, as well as smaller banks Aussie and Bank Australia, both of which cut rates today.
Which lenders are offering the lowest fixed rates?
Today’s move from Macquarie sees the bank dominate the lowest fixed rates for all 1- to 5-year terms, excluding eco loans.
Bank Australia is offering a 3-year fixed rate of 4.94% for new energy efficient builds that are all electric, have solar panels, a NatHERS rating of 7.5 stars or more and other criteria.
Lowest fixed home loan rates on Canstar’s database
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| Term | Lender | Lowest rate from |
|---|---|---|
| 1-year | Macquarie Bank |
5.29% |
| 2-year | Macquarie Bank |
5.19% |
| 3-year | Macquarie Bank |
5.19% |
| 4-year | Macquarie Bank |
5.39% |
| 5-year | Macquarie Bank |
5.39% |
Source: canstar.com.au. Excludes eco loans.
Which comes out on top – the lowest 2-year fixed or the lowest variable?
If the average borrower with a $600,000 loan and 25 years remaining switched to the lowest 2-year fixed rate at 5.19% instead of the lowest variable rate at 5.59%, and there were three standard RBA rate cuts through to the end of this year, as forecasted by Commonwealth Bank (CBA), they could end up paying an estimated $2,645 more in interest in this fixed rate term, compared to if they had opted for the lowest variable.
This assumes banks pass on each RBA cash rate cut in full and that there are no further cuts or hikes for the remainder of the fixed term—none of which are a certainty. Fewer rate cuts could potentially see this equation turn out in favour of fixed—especially if they materialise later in the year.
Compare lowest variable home loans
Fixed vs variable, $600k loan with 3 more RBA cuts
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| Rate today | Interest – next 2 yrs |
|
|---|---|---|
| Lowest 2-year fixed | 5.19% | $61,073 |
| Lowest variable | 5.59% | $58,428 |
| Difference | -0.40% pts | $2,645 |
Source: canstar.com.au. Notes: based on an owner-occupier paying principal and interest with a $600K loan in May 2025 and 25 years remaining. Assumes there are 3 cash rate cuts through to the end of year (CBA forecast) and the cash rate remains steady following this. Calculations are estimates and do not include fees or any extra repayments. Lowest rates exclude green and introductory rate loans.
Fixed rate or variable: which is best?
Canstar’s Data Insights Director, Sally Tindall says, “Macquarie has taken the knife to its fixed rates ahead of next month’s RBA meeting as it ramps up competition in the fixed mortgage market.”
“These sweeping cuts from Australia’s fifth largest home loan lender puts the bank squarely in pole position as the lowest fixed rate lender in the market, with the most competitive fixed rates in each of the 1- to 5- year categories, when eco loans are excluded.
“However, rates as low as 5.19 per cent are still unlikely to prompt many borrowers into locking into a fixed mortgage and effectively handing over their chance to benefit from any future cash rate cuts.
“All four big banks are now tipping a cash rate cut next month, with NAB expecting a double cut of 0.50 percentage points at the May meeting.
“Over the last month, 18 lenders have cut at least one fixed rate, with more likely to come in the lead up to the RBA’s next monetary policy meeting, particularly now Macquarie has thrown down this gauntlet.
“However, a cash rate cut in May is not a foregone conclusion. While the RBA will almost certainly consider the case for a cut, it is not yet guaranteed, although we will get a clearer picture next week when the latest quarterly CPI results are released.
“For those who are thinking of fixing, consider putting aside the crystal ball and looking for a solution that suits your finances. If you do decide to fix, understand the implications if you want to break the contract early and make sure you’re happy with your rate, come what may.”
Owner occupied
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Owner occupied
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Owner occupied
20% min deposit
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Owner occupied
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Owner occupied
40% min deposit
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Cover image source: Jo Panuwat D/Shutterstock.com
This article was reviewed by our Content Producer Nick Whiting before it was updated, as part of our fact-checking process.
Owner occupied
20% min deposit
Redraw facility
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