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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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
5.64% p.a.
5.68% p.a.
$2,883
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Offset
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning


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