The new rates will take effect from 23 May, with Macquarie now the fastest major bank to pass on the full 25 basis point reduction.
The cut will effect both new and existing customers on variable rate home loan products.
The bank's lowest advertised variable rate is expected to drop to 5.64% p.a., down from 5.89% p.a., for eligible owner-occupiers making principal and interest repayments.
For a borrower with a $600,000 mortgage, that change could lower monthly repayments by around $90- from $3,555 to $3,460 - saving approximately $1,080 per year.
"We know homeowners across Australia are watching rate movements closely and that every dollar counts," said Macquarie head of personal banking Ben Perham.
"That’s why we’re reducing the time it takes for this rate cut to be effective from 10 days to three so our customers can feel the benefit of lower rates, and more money in their pockets at the end of each month, sooner."
The change applies to both owner-occupiers and investors on variable loans.
Borrowers on fixed-rate terms will not be affected until their term expires.
Unlike some major banks, Macquarie automatically adjusts repayment amounts following interest rate changes.
“A lot of banks expect their customers to jump through hoops to get a good savings rate and to do all the legwork when home loan rates are cut," Mr Perham said.
"At Macquarie Bank, we’re dedicated to simplifying banking for our customers, which is why we automatically adjust direct debits to the minimum monthly mortgage repayment amount for our variable home loan customers when we make changes to our rates."
When home loan customers will realise the lower repayments depends on the BSB of their home loan account and whether they're making principal and interest or interest-only repayments.
In previous rate cut cycles, some borrowers did not see the savings reflected until the month following the rate change being implemented.
Macquarie also encourages any borrowers experiencing financial difficulty to get in touch with its customer support team, with hardship assistance available for those who need it.
See how other lenders are responding to the RBA's May rate cut: Your Mortgage rolling coverage
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