There has been another influx of lenders lowering home loan interest rates this week, with Macquarie Bank, HSBC, and Bank Australia among them. 

Of course, dropping interest rates can be a means for a bank to gain a competitive edge or bolster its loan book.

It could also be a signal that experts housed within it believe the RBA is on the precipice of a cutting cycle. 

InfoChoice's database shows 11 lenders altered home loan rates in January, while the number of institutions offering cashbacks dropped from 14 to 10.

The average owner occupier P&I variable rate was 6.55% p.a. compared to 6.83% p.a. for investors - an increase of 20 and 18 basis points over the month respectively.


The RBA board will meet for the first time in 2024 on Tuesday.

The majority of economists, and the market, expect the meeting to result in a cash rate hold on the back of a downside surprise in annual inflation, revealed earlier this week.

None of the big four banks are predicting a cash rate cut in the current half, with each tipping the first to come later this year. 

Though, not all home loan lenders reduced mortgage interest rates this week. 

IMB and RACQ hiked home loan interest rates by as much as 20 basis points. 

Macquarie lowers variable interest rates by up to 21 basis points

For a consecutive week, the nation’s fifth largest lender has appeared in InfoChoice’s regular breakdown of home loan rate changes. 

It dropped fixed home loan rates by as much as 56 basis points last week.

This time, it's the bank’s variable rates on the cutting block.

Macquarie Bank slashed its variable home loan interest rates by as much as 21 basis points this week.

Changes for new owner occupiers making principal and interest (P&I) repayments include:

Product (owner-occupier)

Change

New rate 

  • Basic Variable, loan-to-value ratio (LVR) ≤70%

-9 bps

6.15% p.a. (6.17% p.a. comparison rate*)

  • Basic Variable, LVR ≤80%

-11 bps

6.19% p.a. (6.21% p.a. comparison rate*)

  • Basic Variable, LVR ≤90%

-21 bps

6.39% p.a. (6.41% p.a. comparison rate*)

  • Basic Variable, LVR ≤95%

-11 bps

7.19% p.a. (7.22% p.a. comparison rate*)

Meanwhile, new investors making P&I repayments might be able to realise these new rates: 

Product (investment)

Change

New rate 

  • Basic Variable, loan-to-value ratio (LVR) ≤60%

-10 bps

6.34% p.a. (6.36% p.a. comparison rate*)

  • Basic Variable, LVR ≤70%

-10 bps

6.34% p.a. (6.36% p.a. comparison rate*)

  • Basic Variable, LVR ≤80%

-9 bps

6.45% p.a. (6.48% p.a. comparison rate*)

  • Basic Variable, LVR ≤90%

-21 bps

7.29% p.a. (7.32% p.a. comparison rate*)

HSBC reduces fixed interest rates by up to 80 basis points 

The 159-year-old institution cut many of the fixed rates on both its packaged home loans and its standard offerings.

Changes to the latter, for borrowers with an LVR of between 60% and 80%, include:

Product (owner-occupier)

Change

New rate

One year fixed 

-60 bps

6.19% p.a. (7.43% p.a. comparison rate*)

Two years fixed

-60 bps

6.19% p.a. (7.30% p.a. comparison rate*)

Three years fixed

-60 bps

6.19% p.a. (7.18% p.a. comparison rate*)

Four years fixed

-80 bps

6.09% p.a. (7.04% p.a. comparison rate*)

Five years fixed

-80 bps

6.19% p.a. (6.98% p.a. comparison rate*)

Orange Credit Union slashes fixed rates by as much as 100 basis points

This week’s largest move was made by the member-owned Orange Credit Union, based in Orange, NSW with products available nationwide.

The credit union is one of Australia's smaller institutions with less than $200 million in home loans on its books at the end of 2023.

The bank now offers one of the market’s most competitive rates for fixed terms of one year, according to InfoChoice market research.

Both owner-occupiers and investors with LVRs of up to 95% are able to take advantage of a 5.94% p.a. one year fixed rate, with this week's changes including:

Product

Change

New rate

Fixed one year

-30 bps

5.94% p.a. (7.30% p.a. comparison rate*)

Fixed two years

-90 bps

5.99% p.a. (7.17% p.a. comparison rate*)

Fixed three years

-100 bps

6.14% p.a. (7.09% p.a. comparison rate*)

Investment, fixed one year

-30 bps

5.94% p.a. (7.30% p.a. comparison rate*)

Investment, fixed two years

-90 bps

5.99% p.a. (7.17% p.a. comparison rate*)

Investment, fixed three years

-100 bps

6.14% p.a. (7.09% p.a. comparison rate*)

IMB and RACQ hike home loan interest rates

Among a sea of home loan interest rate cuts, IMB and RACQ Bank stand out as hikers.

IMB increased some of its fixed mortgage interest rates by as much as 20 basis points this week, while RACQ Bank upped some fixed and variable rates by 10 basis points.

Other lenders cutting home loan interest rates

Here are other home loan lenders cutting interest rates this week, ordered by the size of cuts, from largest to smallest:

  • Greater Bank dropped fixed and variable interest rates by up to 45 basis points
  • Great Southern Bank reduced variable interest rates by up to 25 basis points
  • Bank Australia lowered fixed interest rates by up to 20 basis points
  • Newcastle Permanent decreased fixed and variable interest rates by as much as 11 basis points
  • Bank of Sydney cut variable interest rates by 10 basis points

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
Featured Online ExclusiveUP TO $4K CASHBACK
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Refinance onlyAPPLY IN MINUTES
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

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