Australia’s fifth largest bank, Macquarie, has cut variable home loan rates as competition ramps up in the tussle for new customers.
This move takes the total number of lenders cutting new customer variable rates in the last two months to 28.
Macquarie’s cuts, which are only 0.05 percentage points, take the bank’s lowest advertised rates on both its basic and offset account mortgages down to 6.04%.
As with most out-of-cycle rate cuts, the change is reserved for new customers only.
Macquarie Bank changes to its lowest variable rate loans | ||
|---|---|---|
Old rate from | New rate from | Change %-pts |
6.09% | 6.04% | -0.05 |
Source: Canstar. Note: Rates are for owner-occupiers with a 30% deposit for Macquarie’s basic and offset home loan.
Which other banks are cutting new customer variable rates?
The big four banks have yet to make a cut to their advertised variable rates in this time, however, pressure is ramping up as smaller lenders put up a fight for a greater share of the home loan market.
Canstar tracking shows the list of 28 lenders that have cut at least one new customer rate since 1 June includes:
- Bendigo
- BOQ
- Suncorp
- AMP
- Teachers Mutual Group
- Bank Australia; and
- Virgin Money
Why are banks cutting variable rates?
Pressure on banks to grow their mortgage books against a slowing property backdrop is likely to be causing lenders to ramp up new customer incentives, with NAB yesterday reporting a 15% drop in new home lending applications in the three months to June 2026.
However, official data is yet to show a slowing in total residential mortgage books.
APRA’s monthly banking statistics for June showed a $17.9 billion increase from the previous month (0.7%), taking the total value of residential home loans to another record high of $2.51 trillion.
Macquarie recorded the largest monthly increase among the big five banks, in percentage terms, rising by 1.9% or $3.4 billion in the month.
However, CBA recorded the biggest increase in dollar terms at $5.0 billion or 0.8% compared to May.
The competition between the two banks is likely to be, at least partly, responsible for today’s new customer rate cut from Macquarie, which puts its lowest advertised variable rate now a fraction below CBA’s at 6.04% and 6.09% respectively.
APRA: Residential | ||||
|---|---|---|---|---|
Amount | Market | Monthly | Year-on- | |
CBA | $635.5 | 25% | +0.8% | +7% |
Westpac | $517.6 | 21% | +0.5% | +6% |
NAB | $351.5 | 14% | +0.5% | +5% |
ANZ | $330.9 | 13% | +1.0% | +4% |
Macquarie | $183.7 | 7% | +1.9% | +27% |
All | $2.51 | 100% | +0.7% | +7% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, June 2026, released 31 July 2026, prepared by Canstar. Includes owner-occupied and investor loans to households. ANZ figures do not include former Suncorp mortgages.
Big five lowest variable owner-occupier rates
Bank | Rates from |
|---|---|
CBA | 6.09% |
Westpac | 5.99% |
NAB | 6.09% - 6.79% |
ANZ | 6.25% |
Macquarie | 6.04% |
Source: Canstar. Lowest rates are for owner-occupiers paying principal and interest. LVR and other requirements apply. NAB’s lowest rate is a range.
What is a competitive rate?
Macquarie’s new lowest rate falls short of the sub-6% club, of which there are currently 43 members, including big bank Westpac, while the lowest rate in the market is currently 5.69% from both LCU and Pacific Mortgage Group.
Lowest owner-occupier rates on Canstar:
Lender | Rate from |
|---|---|
LCU, Pacific Mortgage Group | 5.69% |
Horizon Bank* | 5.74% |
Unity Bank | 5.80% |
Virgin Money, Police Bank*, Border Bank* | 5.84% |
Source: Canstar. * First home buyer specific loans. LVR and other requirements apply for lowest rates.
Rate competition is what borrowers need
Canstar's Data Insights Director, Sally Tindall, says, “Macquarie’s new customer rate cuts confirm what we already suspected: competition in the mortgage market is ramping up.”
“We already had 27 lenders cutting at least one new customer rate since 1 June. Today we have 28, with Australia’s fifth largest bank joining the rate cutting frenzy.
“APRA data shows competition between CBA and Macquarie in particular is fierce. CBA might have grown its loan book by the largest amount in dollar terms, at a whopping $5 billion in just one month, however, Macquarie is still knocking at its door, increasing by $3.4 billion or 1.9 per cent in the month of June.
“The ramping up of new customer discounts is similar to what we saw back in 2022 when the RBA started ratcheting up the pressure on the cash rate, however, we’re nowhere near the levels of mortgage warring we saw back then. If the big banks start cutting their advertised rates they’ll do so cautiously.
“Rate relief isn’t coming from the RBA any time soon and so this ramping up in competition is the kind of news borrowers need right now. Just know, if you’ve got a mortgage, it won’t make one iota of difference unless you do something about it. This means haggling with your current bank for a rate discount, or turning yourself from an existing customer into a new one by refinancing.
“Refinancing is more paperwork and in many cases you can be up for over $1,000 in switch fees, but if you’re lugging around a giant wad of debt, then you could find the drop in interest rate makes up for the upfront financial cost in a matter of months.”
