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Macquarie owner-occ mortgage lending jumps 17.5%

Macquarie owner-occ mortgage lending jumps 17.5%

Macquarie Bank has been growing its owner-occupier home loans business more than twice as fast as the big four banks.

Macquarie had $21.4 billion of owner-occupier mortgages on its books at the end of April, according to statistics released by APRA, Australia’s banking regulator (see table below).

That was 17.5 per cent higher than the year before and 5.0 per cent higher than the quarter before.

By contrast, the big four banks averaged growth of 6.5 per cent over the year and 1.3 per cent over the quarter.

However, the big four still have much larger owner-occupier home loan books than Macquarie.

LenderOutstanding loansQuarterly changeAnnual change
ANZ$176.2 billion1.3%8.9%
Commonwealth Bank$285.0 billion1.2%5.5%
NAB$148.4 billion0.8%6.4%
Westpac$252.7 billion1.7%6.2%
Big four average$215.6 billion1.3%6.5%
Macquarie Bank$21.4 billion5.0%17.5%

Macquarie has two home loan products aimed at owner-occupiers – the Basic Home Loan and Offset Home Loan.

The Basic Home Loan starts at 3.69 per cent (comparison rate 3.69 per cent), while the Offset Home Loan also starts at 3.69 per cent (comparison rate 3.94 per cent).

RateCity.com.au money editor Sally Tindall said Macquarie is differentiating itself from the big four banks by offering lower advertised rates.

“Macquarie is trying to ditch their reputation as a bank for the wealthy, making a concerted play for everyday mum and dad customers,” she said.

“They’ve done this with a simple proposition that’s hard to argue with: low-cost loans. Right now, they’re competing at the pointy end of the rate table among lesser-known lenders using a big-name brand.

“For many customers who are cost-orientated but nervous about smaller lenders, they seem to be ticking all the right boxes.”

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Fact Checked -

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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Learn more about home loans

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

How much deposit do I need for a home loan from ANZ?

Like other mortgage lenders, ANZ often prefers a home loan deposit of 20 per cent or more of the property value when you’re applying for a home loan. It may be possible to get a home loan with a smaller deposit of 10 per cent or even 5 per cent, but there are a few reasons to consider saving a larger deposit if possible:

  • A larger deposit tells a lender that you’re a great saver, which could help increase the chances of your home loan application getting approved.
  • The more money you pay as a deposit, the less you’ll have to borrow in your home loan. This could mean paying off your loan sooner, and being charged less total interest.
  • If your deposit is less than 20 per cent of the property value, you might incur additional costs, such as Lenders Mortgage Insurance (LMI).

Does Australia have no-deposit home loans?

Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.

However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.

Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.