Macquarie Bank pulls swift backflip, walks back on cheapest fixed rate mortgages
Written by admin on October 15, 2024
Macquarie Bank has pulled a swift U-turn, hiking fixed rate mortgages just two weeks after slashing interest rates to some of the lowest in the country.
Banks and lenders have been jockeying for position ahead of the RBA finally pulling the trigger on an interest rate cut.
Last week, seven lenders cut 116 owner-occupier and investor fixed rates by an average of 0.41 per cent, Canstar data shows. Only one lender hiked last week.
Canstar data director Sally Tindall said Macquarie’s backflip on Tuesday came as a surprise given the bank just lowered some of its fixed rates to the lowest in the market.
“Macquarie’s 5.39 per cent rate was clearly too hot for the bank to handle, forcing it to move its lowest two-to-five-year rate to higher ground just 12 days after it launched,” Ms Tindall said.
The lowest fixed rate options across the market are now 5.49 per cent for two years, and Macquaries cheapest option is 5.69 per cent. Comparatively, the lowest variable rate on offer is 5.94 per cent.
Macquarie’s quick change has been driven by the cost of fixed rate funding, which has ticked up in recent days after sustained falls.
“This could potentially curb the number of fixed rate cuts in the weeks ahead, however, market pressure could still drive a few lenders to sharpen their rates in a bid to remain competitive,” Ms Tindall said.
On the other end of the scale, three providers cut rates on 24 term deposit products by an average of 0.27 per cent last week.
Alongside Macquarie’s hike, the bank did increase rates on savings accounts; new and existing customers got an extra 0.25 per cent, taking savings accounts to 5 per cent, plus a 5.35 per cent four-month welcome rate.
The 5 per cent savings accounts are no strings attached, as opposed to multiple savings options which require people to jump through all sorts of hoops to dodge fees or number of transactions to qualify.
