Macquarie Bank raises interest rates across the board

Posted: 10 July 2018 11:21 am News

The word Rate and a green arrow.

The lender will raise owner-occupier mortgage rates by 6 basis points and investor rates by 10.

The trend of rising mortgage interest rates continues, with Macquarie Bank joining AMP, Suncorp and Bank of Queensland to raise rates despite the Reserve Bank's inaction.

Macquarie Bank will increase its owner-occupier products by 6 basis points. Investment loans, which are usually higher, will rise by 10 basis points.

Rate rises are no joke for Aussie borrowers. Even a small rise becomes a big financial hit for people facing mortgage stress.

Here's what a 6 basis point rise adds to your repayments:

  • Example loan: Macquarie Bank Basic Home Loan – LVR ≤ 90% (Up to $750,000 Owner Occupier, P&I)
  • Original interest rate: 3.99%
  • Borrowing amount: $700,000 over 30 years
  • Original monthly repayment: $3,338
  • New interest rate: 4.05%

Your new repayment would be $3,362, which is an extra $24 a month, or $288 a year.

Recent research found that almost a million Australian households are facing mortgage stress, so these extra costs are very real.

When taking out a mortgage it's important to factor in rate rises and make sure you can handle them. But if you're worried about meeting your repayments you do have options. Talk to your lender about hardship assistance schemes and repayment holidays (a short break in your repayments).

Refinance to avoid rate rise headaches

The real trick to avoiding rising rates is simple: refinance. By comparing rates and switching to a cheaper loan you can save hundreds or even thousands of dollars in repayments.

As long as you've paid off some of your loan and have some equity in the property, then switching should be relatively simple. It's just a question of applying, getting your paperwork together and letting your new lender handle the transition with your current one.

Feeling the pain of rate rises? Switch to a lower rate and save

Rates last updated August 21st, 2019
% p.a.
Offset account
Split account
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Maximum Insured LVR Amount Saved Short Description
$0 p.a.
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
$0 p.a.
Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.
$10 monthly ($120 p.a.)
A low fixed rate loan that lets you borrow up to 80% of your property's value.
$395 p.a.
Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.
$0 p.a.
A competitive variable mortgage for investors looking to refinance. Principal and interest repayments. Refinancers only.

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