Macquarie Cuts to 6.04% as Variable Rate Competition Builds

Macquarie Bank has trimmed its variable home loan rate to 6.04%, undercutting Commonwealth Bank's floor, as out-of-cycle lender competition accelerates.

Macquarie Bank cut its variable home loan rate by five basis points in early August 2026, bringing its lowest advertised rate — on both its basic and offset account home loans — to 6.04%. That puts it fractionally below Commonwealth Bank's current floor of 6.09%.

MPA Australia reports the move makes Macquarie the 28th lender to cut at least one new customer variable rate since 1 June, a run of competitive adjustments that has gathered pace even as the Reserve Bank held the cash rate at 4.35% at its June meeting.

For borrowers watching rates, that split matters: the official cash rate hasn't changed since May's 25 basis point increase — the third rise of 2026, taking the rate to 4.35% — but lenders are competing hard for new business anyway.

Who's Moved, and Who Hasn't

Macquarie isn't alone. Among the lenders that have cut new customer variable rates since 1 June are Bendigo Bank, BOQ, Suncorp, AMP, Teachers Mutual Group, Bank Australia, and Virgin Money. That's a broad sweep across the second and third tier: regionals, mutuals, and specialists.

The big four banks — Commonwealth Bank, Westpac, NAB, and ANZ — have not moved their advertised variable rates during this period, though competitive pressure is building as smaller and mid-tier lenders pursue market share.

These out-of-cycle cuts apply to new customers only — standard practice for lenders adjusting rates outside an RBA decision. If you took out your home loan some time ago and haven't refinanced, your rate is almost certainly higher than what's available to someone entering the market fresh today. That gap is commonly described as a loyalty tax, and it tends to widen when lenders compete hard for new business while leaving back-book rates untouched.

What's Driving the Competitive Push

The timing of this rate competition reflects what's happening in the broader lending market. According to APRA's monthly banking statistics for June, total residential home loans rose by $17.9 billion — a 0.7% increase — to a record aggregate of $2.51 trillion.

Within that, Macquarie posted the largest monthly gain in percentage terms among the big five banks, growing its residential mortgage book by 1.9%, or $3.4 billion. Commonwealth Bank led in dollar terms, adding $5 billion — a 0.8% increase. The race for market share is visible in those numbers.

Despite three cash rate rises this year and a softening property market — national home values posted their steepest monthly decline since December 2022 in July, falling 0.7% according to Cotality data — loan volumes have continued to grow. When buyer demand softens, pricing becomes the primary competitive lever. For non-major banks with less brand recognition and smaller branch networks, rate cuts are often the most direct way to attract borrowers who are actively shopping.

AMP's chief economist Shane Oliver has described the current downturn as "still early days," with a base case of national prices falling around 7% from peak to trough. Sydney is expected to bear the brunt, potentially declining around 11% from its January peak, with the broader market expected to keep softening into next year before bottoming out around mid-2027 — roughly when Oliver expects the RBA to start cutting rates again.

That context matters for refinancers. Rates available to new customers are more competitive than typical back-book rates, even as the property market continues to soften.

What You Should Do Now

If you haven't reviewed your home loan rate in the past 12 months, the current market gives you a clear reason to do so. With 28 lenders now having cut new customer variable rates since June alone, the gap between what's on offer and what you may currently be paying could be substantial.

Use the refinance savings calculator to model what a rate reduction would mean for your monthly repayments and total interest cost. The difference between a rate of 6.60% and 6.04% across a $600,000 loan over 25 years is meaningful — and the calculation takes just a few minutes.

If the numbers stack up, our refinance home loan hub provides a comparison of current options across lenders, including basic and offset products.

One note for existing borrowers: rate cuts for new customers do not automatically flow through to back-book loans. If your lender hasn't written to notify you of a rate change, assume you're still on your existing rate. The only way to access today's competitive pricing is to speak with a broker who can compare across multiple lenders simultaneously, or to explore what's available in the market right now.

Read more in MPA Australia's original report on Macquarie's rate move.