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Macquarie increases mortgage and savings rates following RBA hike

Macquarie increases mortgage and savings rates following RBA hike

Macquarie Bank is the first major lender to announce it will pass on the full double RBA hike to borrowers, while the big four banks are yet to reveal their hands.

From 12 August, variable rates for new and existing customers will rise by 0.50 percentage points, taking Macquarie’s lowest variable rate for owner-occupiers to 3.69 per cent.

Australia’s fifth largest lender has also announced it will cutfixed mortgage rates by up to 0.75 percentage points on Friday, a sign the tide may be turning for fixed rates, which have up until now been increasing sharply.

Macquarie variable rates – impact of 0.50% hike – effective 12 August

Calculations are based on a $500,000, 25-year loan (60% LVR)

Old rateNew rateIncrease in repayments, $500K
Lowest owner occupier rate3.19%3.69%$133
Lowest investor rate3.39%3.89%$135

Source: RateCity.com.au. Based on an owner-occupier paying principal and interest with 25 years remaining. Rates are for LVR of 60% or less.

What’s Macquarie doing for savers?

From tomorrow, Macquarie will increase the introductory rate on its savings account by 2 percentage points to 3.10 per cent for the first four months. It will also raise the ongoing interest rate on this account for existing customers by 0.50 percentage points to 2.25 per cent.

The bank’s transaction account rate will also rise by 0.50 percentage points to 2.25 per cent on 12 August.

Macquarie deposit rate changes

AccountOld RateNew RateChange
Transaction Account1.75%2.25%+ 0.50%
Savings Account2.00% for 4 months

then 1.75%

3.10% for 4 months

then 2.25%

+1.10% to introductory rate, +0.50% to ongoing rate

Source: RateCity.com.au Transaction account hikes effective 12 August. Savings account hikes effective 3 August.

RateCity.com.au research director, Sally Tindall, said: “Macquarie Bank is the first cab off the rank, taking just three hours to announce its RBA rate changes.”

“It’s likely other banks will follow suit and pass on this rate hike in full to their variable rate customers,” she said.

“The big cuts to fixed rates from Macquarie suggest the tide may be turning for fixed rates, which have been sharply rising since late last year.

“The cost of fixed-rate funding, which has soared in recent months, is now starting to come back down, as a result we could see more banks follow Macquarie’s lead and lower fixed rates in the weeks ahead.

“Fixed rates are one indicator of where variable rates may be headed. Anyone considering taking out a fixed rate right now, should weigh up their options.

“It’s great to see Macquarie pass on significant hikes to its transaction and savings accounts. Let’s hope the big four follow suit and offer up decent rate rises to their millions of savers.

“Macquarie will soon be offering 2.25 per cent on its humble transaction account, which is a pretty attractive rate for people looking to earn interest on every spare dollar without any fiddly terms and conditions,” she said.

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