Macquarie Bank Cuts Variable Rates to 6.04% as Mortgage Wars Heat Up

Macquarie Bank cut its lowest variable home loan rate by 0.05 percentage points on July 31, bringing it to 6.04% for new customers only. The move makes Macquarie the 28th lender to cut rates since June 1, signalling intensifying competition in Australia’s mortgage market. With the RBA’s August 11 decision approaching and economists divided on whether rates will rise or fall, borrowers face a critical window to refinance.

Why lenders are cutting rates now

Twenty-eight lenders have slashed variable rates since June 1, according to Canstar analysis, including Bendigo Bank, BOQ, Suncorp and AMP. Macquarie’s rate cut confirmed competition is “ramping up” in the sector. Canstar data insights director Sally Tindall noted that Canstar data shows competition between Commonwealth Bank and Macquarie is “fierce”, with CBA growing its loan book by A$5 billion in June while Macquarie grew by A$3.4 billion, or 1.9 per cent.

The RBA decision and rate relief outlook

The RBA left the cash rate unchanged at 4.35% in June and will meet again on August 11. All four major banks now expect the RBA to hold rates at that meeting following the latest inflation data, though some economists still believe another hike could occur later in 2026. Tindall warned that rate relief from the RBA is unlikely to come soon, so lender competition is the main source of relief for borrowers right now.

What borrowers must do to save

Existing customers will not benefit from rate cuts unless they act. Tindall said borrowers should either haggle with their current bank for a discount or refinance to a new lender. The average variable rate for new owner-occupiers on principal and interest loans now sits at 6.66%, while the lowest rate on Canstar’s database, offered by LCU and Pacific Mortgage Group, is 5.69%. Only three rates on the database currently sit below 5.75%.

Macquarie’s competitive position

Macquarie is Australia’s fifth largest lender and has been aggressive on both variable and fixed rates. In June, it cut its lowest fixed rate to 6.09% for a 3-year term, making it the lowest among the big five banks at that time. Five lenders cut a combined 26 owner-occupier and investor variable rates by an average of 0.11% in late July, showing the pace of competition has not slowed.

Final Thoughts

Macquarie’s rate cut reflects a mortgage market in flux. With Meyka grading MQG.AX a B and forecasting A$237.81 in 12 months against a current price of A$253.09, the stock trades at a 1.2% premium. Borrowers should act now to refinance, as RBA relief remains uncertain.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.