Macquarie Bank has reduced variable home loan rates across several products, offering new rates as low as 5.99% p.a. for property investors making principal and interest repayments.
The changes, effective Friday, include cuts of up to 11 basis points on select investor and owner-occupier interest-only loans.
These reductions come amid improving economic indicators and a day before federal election polls close.
The Australian Bureau of Statistics released promising inflation figures earlier this week.
Underlying inflation has now returned to the Reserve Bank of Australia's (RBA) target band of 2%-3%, bolstering expectations that a cash rate cut could be announced later this month.
The timing of Macquarie's move also coincides with the final stretch of the federal election campaign.
Both major political parties are pledging housing policies designed to increase home ownership, particularly among first home buyers - a likely catalyst for higher demand and price pressure in the months ahead.
Macquarie's new variable home loan rates
Macquarie's Basic Variable home loan now features the following new rates for property investors:
| Product | Interest Type | LVR | Change | New Rate | Comparison Rate* |
|---|---|---|---|---|---|
| Basic Variable Investment | IO | 60% | -10bp | 6.15% | 6.17% |
| 70% | -10bp | 6.19% | 6.21% | ||
| 80% | -11bp | 6.29% | 6.31% | ||
| P&I | 70% | -10bp | 5.99% | 6.10% | |
| 80% | -11bp | 6.09% | 6.11% | ||
| 90% | -9bp | 6.95% | 6.98% |
Owner-occupier interest-only rates also cut
For owner-occupiers making interest-only repayments, Macquarie also reduced rates:
| Product | LVR | Change | New Rate | Comparison Rate* |
|---|---|---|---|---|
| Basic Variable Owner-Occupier (IO) | 60% | -10bp | 6.15% | 6.17% |
| 70% | -10bp | 6.19% | 6.21% | |
| 80% | -11bp | 6.29% | 6.31% |
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| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.29% p.a. | 5.33% p.a. | $2,773 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.19% p.a. | 5.10% p.a. | $2,742 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.39% p.a. | 5.43% p.a. | $2,805 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Linh Pham on Unsplash
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