This round of rate cuts from Australia’s fifth largest bank comes just days after it made cuts to a number of loans with fixed rate terms in mid-March.
The lender also hiked some variable rate home loans for owner-occupiers and investors in early February.
Today’s cuts apply to Macquarie’s basic and offset fixed rate loans for owner-occupiers and investors, with cuts ranging from 0.09 percentage points to 0.60 percentage points.
Some of the rate cuts apply to home loans that already had interest rate reductions applied just a few weeks ago – namely, one, two and three-year fixed loans.
Canstar’s Group Executive of Financial Services Steve Mickenbecker said Macquarie has joined the army of lenders reducing fixed rate loans since wholesale funding costs came down over the last few months.
He said the bank’s largest cuts have been made to four and five-year fixed rate terms.
“The interest rate on money raised in US markets to fund Australian loans has reduced for the longer terms, which enables lenders to reduce four and five-year fixed terms for Australians by a large margin – in this case between 0.40 and 0.60 percentage points,” Mr Mickenbecker said.
Macquarie’s largest rate cut of 0.60 percentage points was applied to some of its investment home loans, including its five-year fixed basic home loan for investors paying principal and interest with at least a 30% deposit, which fell to 3.99% (*comparison rate 4.06%).
As for owner-occupiers, new customers fixing for four or five years experienced cuts of up to 0.40 percentage points. This included the four-year fixed basic home loan for owner-occupiers paying principal and interest with at least a 30% deposit, which now has an interest rate of 3.79% (*comparison rate 3.80%).
Mr Mickenbecker said to be able to lock in rates around 3.80% for a medium term of five years gives borrowers security of repayment at a low rate.
“It’s a great time for borrowers to be thinking about fixing in a rate that they can afford right now,” he said.
According to Canstar’s database, the lowest interest rate for loans in this space, at the time of writing, was 3.74% (*comparison rate 4.16%).
Industry super fund-owned ME Bank also reduced a number of fixed rate home loans on Friday, including for loans with a longer term.
It cut one five-year fixed packaged home loan for owner-occupiers paying principal and interest by 0.50 percentage points to 3.99% (*comparison rate 4.37%).
ME’s Head of Home Loans Andrew Bartolo said swap rates have recently fallen, allowing the bank to source cheaper fixed term funding and pass that on to customers.