Macquarie among the first mortgage lenders to pass on RBA rate hike

Macquarie Bank has announced it will pass on the Reserve Bank of Australia’s (RBA) February rate hike in full to its variable rate home loan customers.

The banking major’s variable rate home loan holders will realise the interest rate change on 20 February – 17 days after the RBA announced the hike. 

It marks another RBA move in which Macquarie broke stride from the big four, after moving faster than the industry on the August cash rate cut. 

Macquarie’s lowest rate expected to rise to 5.59% p.a.

The 25 basis point hike will lift rates across Macquarie’s variable home loan products, with its lowest advertised rate – 5.34% p.a. (5.35% p.a. comparison rate*) on its Basic Home Loan product – expected to rise to 5.59% p.a.

For a borrower with a $600,000, 30-year mortgage, such an increase could lift monthly repayments by around $95 .

“Last year, we were proud to be the fastest major bank to pass through the RBA’s rate cuts to our customers so they could start saving on their home loan repayments in just three days,” said Macquarie head of personal banking Ben Perham.

“With rates now on the rise, we want to help our home loan customers adjust to the higher interest rate environment, so we’ve decided to wait until 20 February before passing through this rate increase.”

In addition to the latest variable rate move, Macquarie has hiked its fixed rate offerings three times since November, with its most recent move positioning its lowest fixed rate at 5.59% p.a. (5.39% p.a. comparison rate*) for select borrowers fixing for one year.

“The lending market remains very competitive for borrowers, and after a year of falling rates, this move by the RBA may be a wake-up call for those who have been considering switching their loan to another bank,” Mr Perham said.

What could a rate hike mean for your wallet? Mortgage Repayment Calculator

What do Macquarie Bank home loan customers need to know?

Unlike some banks, Macquarie automatically adjusts home loan repayments to reflect new interest rates.

This means customers may see their minimum repayments rise once the rate change is applied.

However, interest on home loan balances is typically calculated at a daily rate, and that daily rate won’t change until 20 February.

Thus, customers mightn’t notice a significant difference in their repayment amount for some weeks.

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_{Image created on Canva using assets courtesy of Danausi on Wikimedia Commons}