A major bank has started slashing fixed rates ahead of the Reserve Bank’s decision next month.
On Tuesday, Macquarie Bank dropped its one-year fixed rate from 5.85 to 5.69, just four weeks before the Reserve Bank’s next cash rate decision on February 18.
Macquarie Bank’s two-year fixed rate decreased from 5.69 to 5.55, and the three-year fixed rate dropped from 5.69 to 5.55.
The four and five-year fixed rates remain steady at 5.69.
Canstar data insights director, Sally Tindall, said the rate drops could ignite further competition in the fixed-rate market.
‘The fixed rate market has been relatively quiet over the summer break, with more lenders hiking these rates in the month of December than cutting,’ she explained.
‘However, this move from Macquarie could push other lenders into taking a look at the competitiveness of their fixed rates in the lead up to the RBA’s next meeting.
‘Right now, the majority of borrowers are opting to stay on a variable rate, most likely in the hope we’ll see a flurry of cash rate cuts that will deliver relief in the months ahead.
Macquarie Bank is cutting fixed interest rates
The RBA’s 13 hikes in 2022 and 2023 were the most aggressive since the late 1980s
‘If you’ve got a mortgage, don’t bank on there being a multitude of cuts in quick succession. While at least one cash rate cut this year is highly likely, not even the RBA knows exactly how many there will be.’
The RBA’s 13 hikes in 2022 and 2023 were the most aggressive since the late 1980s.
The most competitive fixed mortgage rates currently available include a one-year rate of 5.59 from Police Bank, a two-year rate of 5.49 offered by Easy Street, Bank Vic, and Community First Bank, and a three-year rate of 4.99 from SWSbank.
Macquarie Bank also offers significantly lower fixed mortgage rates compared to the big four banks.
For a one-year term, Commonwealth Bank has the highest rate at 6.39, followed by NAB at 6.29, ANZ at 6.14, Westpac at 6.09, and Macquarie at 5.69.
