Macquarie Leads the Way: Full RBA Rate Cut Passed to Mortgage Holders
In a significant move for Australian mortgage holders, Macquarie Bank has announced it will pass on the Reserve Bank of Australia’s (RBA) 0.25 percentage point rate cut in full to its variable home loan customers. This decision aligns Macquarie with the big four banks—Commonwealth Bank, NAB, Westpac, and ANZ—which have also passed on the cut, providing much-needed relief to borrowers amid ongoing cost-of-living pressures.
The new rate will take effect from 23 May 2025, making Macquarie the fastest among the major banks to implement the reduction. For customers paying both principal and interest, the first monthly repayment that falls within 30 days after this date will remain unchanged, with the reduced repayment applying from the following month. This transition aims to ease the adjustment for borrowers while ensuring they benefit from the lower rate promptly.
Macquarie’s proactive stance is part of a broader trend among lenders competing for a shrinking pool of new business. Beyond the major banks, several smaller institutions have also cut fixed rates, with reductions ranging from 15 to 85 basis points. For instance, Beyond Bank slashed some fixed rates by up to 85 basis points, while IMB, Newcastle Permanent, and Greater Bank reduced theirs by up to 30, 20, and 20 basis points, respectively. These moves reflect a competitive market where lenders are vying to attract and retain customers.
This wave of rate cuts comes as the jobs market remains relatively steady, according to recent unemployment figures, and economists await February’s inflation data, due Wednesday. The RBA’s decision to cut rates is a response to easing inflationary pressures, and the full pass-through by lenders is a positive signal for households. As the financial year progresses, borrowers can expect further adjustments as lenders continue to respond to economic conditions and competitive dynamics.
Shimanta Das 
