Macquarie Bank Cuts Variable Rates to 6.04% as Mortgage Wars Intensify

Macquarie Bank slashed its lowest variable home loan rates by 0.05 percentage points to 6.04% on July 31, joining a wave of smaller lenders competing fiercely for new customers. The cut is reserved for new customers only. A total of 28 lenders have reduced new customer variable rates since June 1, according to Canstar analysis, as pressure mounts on banks to grow loan books against slowing property demand.

Why banks are cutting rates now

NAB reported a 15% drop in new home loan applications in the three months to June 2026, signalling weakening demand. Banks are cutting rates to attract new customers and grow their mortgage books. Macquarie recorded the largest monthly increase among the big five banks in percentage terms, rising 1.9% or A$3.4 billion in June, while CBA grew by A$5.0 billion or 0.8%.

The RBA’s August decision looms

The Reserve Bank of Australia will meet on August 11 to decide on the cash rate, currently at 4.35%. All four major banks now expect the RBA to hold rates following the latest inflation data. However, 55% of economists surveyed by Finder expect at least one further rate increase in 2026. Market observers have predicted the RBA’s next move could be down, though rate relief is unlikely soon.

What this means for borrowers

Canstar data insights director Sally Tindall warned that rate cuts from banks will not help existing customers unless they act. “If you’ve got a mortgage, it won’t make one iota of difference unless you do something about it,” she said. Borrowers can haggle with their current bank for a discount or refinance to a new lender to access lower rates. The competition between CBA and Macquarie in particular is fierce, according to APRA data.

Meyka data on Macquarie stock

Macquarie (MQG.AX) trades at A$253.09 with a Meyka grade of B, suggesting a hold rating. The stock carries a 12-month forecast of A$237.81, implying 6% downside from current levels. With a PE ratio of 20.31 and RSI at 50.90, the stock shows no clear trend, though the dividend yield stands at 2.77%.

Final Thoughts

Macquarie’s rate cut reflects intense competition for new mortgages as banks struggle with slowing demand. Existing customers must refinance or negotiate to benefit. The August RBA decision will likely set the tone for further moves.

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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.