Macquarie Bank Cuts Home Loan Rates as 28 Lenders Compete for Borrowers; Credit Card Perks Slashed

Why Macquarie Joined the Mortgage Rate Cutting Frenzy

Australia's fifth-largest lender, Macquarie Bank, has shaved 0.05 percentage points off its lowest variable home loan rates, bringing them to 6.04% for new customers. The move is part of a broader wave — 28 lenders have lowered variable rates over the past two months as the industry vies for fresh mortgage business.

The discounting comes amid growing market expectations that the Reserve Bank of Australia's next cash rate move will eventually be down, even though the central bank is not expected to cut any time soon. For now, the competition is the main source of relief for borrowers, with Macquarie adding $3.4 billion to its loan book in June alone, while CBA grew by $5 billion.

At the same time, NAB, Westpac and ANZ are scaling back credit card rewards. NAB is altering fees and earn rates — also affecting its white-label cards for MyCard, Virgin Money and Bank of Queensland — Westpac is removing complimentary card insurance, and ANZ has already pulled back certain benefits. The changes are timed to coincide with a scheduled RBA ban on excessive surcharges, which will take effect on October 1 and reduce the interchange fees banks collect from merchants.

How Competition and Regulation Are Reshaping Banking Deals

What Macquarie's Rate Cut Reveals About the Mortgage Market

The 0.05 percentage point reduction is modest but symbolic: it signals that intense competition for new home loan customers is forcing lenders to front-run any eventual RBA easing. Existing customers, however, will not benefit automatically. As Sally Tindall, research director at RateCity, noted, the discounted rates are reserved for new borrowers, which means tired homeowners need to actively chase a better deal — either by haggling with their current bank or refinancing to reset their status as a new customer.

Credit Card Perks Are Shrinking Ahead of RBA Ban

The September deadline for the RBA's surcharge ban is prompting card issuers to recalibrate. The ban will cap interchange fees — the fee a merchant's bank pays the cardholder's bank for each transaction — which makes current reward programs less sustainable. The cuts at NAB, Westpac and ANZ are direct responses: reducing earn rates, removing insurances and adjusting fees protects profit margins as fee income shrinks. More cards are likely to follow, particularly those with generous points or complimentary features, as banks brace for lower revenue streams.

For consumers, the immediate effect is less generous card perks, but the surcharge ban should also mean fewer businesses adding extra surcharges at checkout, potentially lowering everyday costs.

What Borrowers and Cardholders Should Do Now

• Check your mortgage rate. If you're on a variable rate above 6.04%, contact your lender and ask for a discount, or compare refinancing offers. Even a 0.25 percentage point drop can save hundreds per year.
• Review your credit card benefits before October 1. If you rely on complimentary insurance or higher earn rates, check your card's new terms. You might want to use up points or switch cards before the changes take effect.
• Don't wait for the RBA. With no rate cut expected from the central bank until at least next year, any mortgage savings will come from lender competition. Make yourself a new customer by refinancing if your bank won't budge.
• Watch for more credit card tweaks. As interchange fee caps kick in, expect further reductions in rewards, so monitor your card's communications for fee or earn-rate adjustments.