Macquarie to lift a number of home loan interest rates

Australia’s fifth largest bank Macquarie is the latest lender to announce a series of home loan interest rate hikes for owner-occupiers and investors.
Macquarie
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Owner-occupier variable rate loans with principal and interest repayments will increase by 0.06 percentage points, while those with interest-only repayments will rise by 0.16 percentage points.

The bank’s principal and interest basic home loan variable rate for owner-occupiers with a loan-to-value ratio of 80% will rise to 3.86% (comparison rate of 3.86%), while a similar loan for investors will rise to 4.35% (comparison rate of 4.35%).

Investment variable rate loans with principal and interest and interest-only repayments will lift by 0.16 percentage points.

Macquarie is also making rate cuts of 0.10 percentage points and 0.40 percentage points for four and five-year fixed rate home loans for new owner-occupier customers and for new investment interest-only loans.

Canstar Group Executive of Financial Services Steve Mickenbecker said while Macquarie has not yet explained why it has made the rate hikes, it was probably likely to do with rising wholesale funding costs that led National Australia Bank to lift rates in late January.

He said National Australia Bank was catching up with rate hikes after having held off when most of the other major banks lifted rates in August and September last year.

“This doesn’t necessarily act as a precursor for further movements from the other major lenders which have already moved their rates up,” Mr Mickenbecker.

Macquarie’s rate changes will come into effect from Monday, 11 February for new borrowers and from 22 February for existing borrowers.

UBank and Bank of Queensland have also recently increased some of their home loan interest rates, while AMP Bank and Heritage Bank have decreased a number of investment home loan rates.

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