Macquarie Bank interest rate hike following RBA cash rate decision



Macquarie Bank responded to the Reserve Bank of Australia’s (RBA) cash rate hike this week by raising interest rates on its variable home loans, following Westpac, the first major bank to do so. Here’s what he announced and what it could mean for home loan customers.




At its monthly meeting this week, the RBA raised the policy rate by 50 basis points to 0.85%. This is the second interest rate hike in as many months by Australia’s central bank, and the largest in 22 years, with the scale of the hike taking many pundits by surprise.








Readers, note that home loan rate changes are often expressed in terms of “basis points” – if you want to learn more, you can read our explainer on how basis points work.




Macquarie Bank mortgage interest rate hike




Following the RBA’s decision on cash rates, Macquarie Bank said it would raise its variable interest rates on home loans by 50 basis pointswith the change effective from June 17, 2022, we have therefore analyzed the figures to find out how this could affect customers.




The table below shows Macquarie Bank’s current lowest variable interest rate for a homeowner with a 20% deposit, along with the increase announced this week and when the increase will take effect. It also shows what this rate change could mean for your monthly home loan repayments, and how many repayments have changed since late April, before the RBA’s initial cash rate hike last month.




Note that these calculations are based on a hypothetical $500,000 homeowner mortgage with a loan-to-value ratio (LVR) of 80%. Our calculations are based on an assumed 30-year home loan, with monthly principal and interest repayments, using the lowest variable rate available from the lender in question.




Lowest variable interest rate (June 7, 2022) Announced increase From Increase in monthly repayments Switch to monthly repayments since April
Macquarie Bank 2.49% 50 basis points June 17 $132 $196

Source: www.canstar.com.au, 08/06/2022. Current lowest rate based on variable homeowner rates available prior to the June cash rate increase, for a loan amount of $500,000 at 80% LVR and with principal and interest repayments. Monthly repayment calculations are based on a $500,000 loan repaid over 30 years using principal and interest repayments, excluding fees and assuming rates remain the same after rate increases already announced. Lowest rate based on the lowest interest rate available before the June 2022 cash rate increase, among products that were also available before the May 2022 increase. Rates based on those available for new clients. Comparison rates are calculated based on a loan amount of $150,000 and a loan term of 25 years. Read it Compare rate warning.

Macquarie Bank Savings and Transaction Account Rates Rise

Macquarie will raise interest rates on its transaction accounts to match the rates on its current savings accounts. Customers will be able to earn 1.50% on their trading accounts on balances up to $250,000, which Macquarie says is more than 145 basis points above the industry average for trading accounts.

Macquarie’s savings account base rate will also be increased to 1.50% for balances up to $250,000, an increase of 50 basis points. The two rate changes will come into effect on June 17, 2022.




For example, customers with $10,000 in their transaction account or savings account can earn $12.50 per month in interest with the current interest rate of 1.50%. The savings account currently also offers new customers a “welcome rate” totaling 1.80% for the first four months on balances up to $250,000.








Cover image source: Piotr Swat/Shutterstock.com





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