Macquarie and ING lead the pack with significant cuts
A handful of lenders reduced their fixed home loan rates over the past week with no rate hikes reported, signalling heightened competition in the mortgage market.
According to the latest RateCity interest rates weekly wrap-up, the majority of rate reductions were concentrated in two- and three-year fixed terms, as banks vie for customers by offering more competitive rates.
Macquarie, Australia’s fifth-largest lender, slashed rates on its one- to three-year fixed loans by up to 0.30 percentage points. The bank now holds the lowest two-year fixed rate at 5.59% for owner-occupier borrowers with a 30% deposit.
ING also made significant reductions, cutting fixed rates by as much as 0.60 percentage points. Its three-year fixed rate is now set at 5.69%, making it one of the more competitive options on the market.
Among variable rates, Abal Bank still offers the most competitive rate at 5.75%. Following closely are Police Bank, Bank of Heritage Isle, and Border Bank, all offering 5.84%. Other lenders, including Pacific Mortgage Group, The Mutual Bank, and Police Credit Union, provide rates at 5.89%.
For fixed rate loans, Geelong Bank leads with a one-year fixed rate at 5.50%. Macquarie Bank offers the lowest two-year rate at 5.59%, while Police Credit Union advertises the most attractive three-year rate at 5.49%. For four- and five-year fixed terms, HSBC and RACQ each list rates at 5.59%. 
Meanwhile, the lowest advertised variable rate among the major lenders comes from NAB at 6.14%, followed closely by Commonwealth Bank at 6.15%.
For fixed rates, Westpac offers the most competitive rate for one-, two-, three-, and five-year terms, with rates as low as 5.89% for three- to five-year loans. ANZ follows closely with rates for these terms ranging from 5.89% to 6.84%. NAB and Commonwealth Bank both have their lowest three-year fixed rates advertised at 5.99% and 5.89%, respectively.
“The RateCity.com.au database shows a growing number of lenders with at least one home loan rate under 6%,” said Laine Gordon (pictured above), money editor at RateCity.com.au. “Currently, 70 lenders have a sub-6% rate, compared to 58 lenders just last month.
“RBA governor Michele Bullock, however, poured cold water on the possibility of a cash rate cut anytime soon, pointing out that such talk is ‘premature’, at a speech made on Thursday last week.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
