Full article
Full article text extracted for easier reading in-app.
Macquarie cuts variable home loan rates as lender competition heats up
Australia's fifth-largest bank joins 27 other lenders to reduce new customer variable rates since June
Rommel Lontayao · Mortgage Professional
Australia's fifth-largest bank joins 27 other lenders to reduce new customer variable rates since June
Macquarie Bank has reduced its variable home loan rates by five basis points, bringing its lowest advertised rates on both basic and offset account mortgages to 6.04% — positioning it fractionally below Commonwealth Bank's current floor of 6.09%.
The move makes Macquarie the 28th lender to cut at least one new customer variable rate since 1 June, according to Canstar.com.au tracking. As is standard practice for out-of-cycle adjustments, the reductions apply to new customers only.
The big four banks have not moved their advertised variable rates during this period, though competitive pressure is building as smaller lenders pursue greater market share.
Other institutions that have cut new customer variable rates since 1 June include Bendigo Bank, BOQ, Suncorp, AMP, Teachers Mutual Group, Bank Australia, and Virgin Money.
APRA's monthly banking statistics for June recorded a $17.9 billion increase in total residential home loans from the previous month — a 0.7% rise — lifting the aggregate to a record $2.51 trillion. Macquarie posted the largest monthly increase among the big five banks in percentage terms, up 1.9% or $3.4 billion. CBA recorded the largest dollar-value gain at $5 billion, or 0.8%.
APRA: Residential housing loans
| Lender | Amount | Market share | Monthly change | Year-on-year change |
|---|---|---|---|---|
| CBA | $635.5 billion | 25% | +0.8% | +7% |
| Westpac | $517.6 billion | 21% | +0.5% | +6% |
| NAB | $351.5 billion | 14% | +0.5% | +5% |
| ANZ | $330.9 billion | 13% | +1.0% | +4% |
| Macquarie | $183.7 billion | 7% | +1.9% | +27% |
| All ADIs | $2.51 trillion | 100% | +0.7% | +7% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, June 2026, released 31 July 2026, prepared by Canstar.com.au. Includes owner-occupied and investor loans to households. ANZ figures do not include former Suncorp mortgages.
Despite the competitive activity at the lender level, NAB reported a 15% decline in new home lending applications in the three months to June 2026, signalling some softening in borrower demand.
Macquarie's revised rate remains outside what analysts describe as the sub-6% cohort, which currently comprises 43 lenders including Westpac. The lowest rate in the market is 5.69%, offered by both LCU and Pacific Mortgage Group.
Big four lowest variable owner-occupier rates
| Bank | Rates from |
|---|---|
| CBA | 6.09% |
| Westpac | 5.99% |
| NAB | 6.09% – 6.79% |
| ANZ | 6.25% |
| Macquarie | 6.04% |
Source: Canstar.com.au. Lowest rates are for owner-occupiers paying principal and interest. LVR and other requirements apply. NAB's lowest rate is a range.
"Macquarie's new customer rate cuts confirm what we already suspected: competition in the mortgage market is ramping up," said Sally Tindall (pictured right), data insights director at Canstar.com.au. "We already had 27 lenders cutting at least one new customer rate since 1 June. Today we have 28, with Australia's fifth largest bank joining the rate-cutting frenzy."
She drew a partial comparison to the 2022 rate cycle, saying competitive discounting had picked up but had not yet reached the intensity seen then. "If the big banks start cutting their advertised rates, they'll do so cautiously," she added.
For Tindall, the competitive activity was welcome news for borrowers given that RBA rate relief was not imminent, but warned that existing customers would not benefit unless they acted — either by negotiating a discount with their current lender or by refinancing.
On refinancing, she acknowledged the costs involved but argued the maths could still favour switching. "Refinancing is more paperwork and in many cases, you can be up for over $1,000 in switch fees, but if you're lugging around a giant wad of debt, then you could find the drop in interest rate makes up for the upfront financial cost in a matter of months."
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.