Macquarie Bank is an Australian-based global bank with a complex reputation. On one hand, they are known for forcing the major banks to lower their rates in the late 90s by setting a more competitive rate standard. On the other hand, during the Global Financial Crisis, Macquarie pulled out of the market and left many low-doc borrowers in a difficult position with higher interest rates. Today, the bank has a very conservative lending policy but does offer a nice combination of competitive rates and substantial customer service for those who qualify.
Keep it simple with no low interest rates
Macquarie’s Basic Home Loan offers a low-interest rate and zero application or account management fees. You can opt for a variable or fixed loan, or split your loan to take advantage of both rate types. This loan isn’t full-featured like other products but if you want a straightforward product at an exceptional price, this is a good option for those who qualify and can put down at least a 20% deposit.
Pay off your loan sooner by using your savings
You could save a substantial sum by lowering your interest owed with an offset account – Macquarie lets you have up to ten fully transactional accounts with your loan. Combine this with a competitive rate and a Macquarie credit card with no annual fee for the life of your loan and you have a smart home loan for savvy borrowers.
Macquarie bank has recently been passing on the rate cuts that have been made by the RBA. For instance, when the RBA made the emergency rate cut in mid March 2020, Macquarie bank successfully cut all their home loan rates by 0.25%.
There are Macquarie Bank branches, however the number of branches is lower than that of the big four bank. For instance, there are only 9 branches in New South Wales. If you want more information on where Macquarie Bank’s branches are located, you can visit their website here.
Macquarie Bank is a part of the Australia Government Bank Deposit guarantee scheme. This means that when you make deposits of up to $250,000 at Macquarie Bank, they will be protected by this scheme to ensure that you don’t lose money should the banking institution collapse.
Macquarie Bank manages the loans of clients in 50 different countries. Their total asset and loan portfolio amounts to $21.3 billion AUD.
When you create a Macquarie Account, all your Macquarie home loans will be listed as well as other products that you may be using such as the Macquarie Credit card. If you need assistance setting up your account, you can access instructions here.
To make repayments online, you will need to have a Macquarie Online banking account. If you go to the Accounts tab in the Macquarie Online Banking application and then select repayment details, you will be able to see how much you owe. Under the accounts section, select Account details. You will be able to update your repayment direct debit details here. Through this direct debit mechanism, you can pay off your Macquarie home loan.
Macquarie Bank’s home loans have been rated 5.8/10 by comparison site Mozo. Macquarie Home loans have been praised for their flexibility, their competitive rates and good customer service.
Yes, all Macquarie Bank Home Loans have a maximum 30 year loan term.
You will have a minimum amount you need to pay towards your Macquarie Home Loan, to be made in fortnightly or monthly instalments. However, extra repayments towards your loan can be made with some of their mortgage products. They also have redraw facilities, which mean you can access these extra repayments for whatever purpose you see fit.
Repayments are due on monthly anniversary of your settlement. However, you can also elect to make fortnightly or extra repayments.
Unless stated otherwise in your loan contract, the minimum redraw amount for Macquarie Bank is $500 with no additional fees to redraw online. However, the maximum online transfer amount is $20,000. If you have a Macquarie home loan with a redraw facility, you can access and withdraw your balance on their online banking app or website.
You can apply for a Macquarie Home Loan by filling out an online application form. However, it’s important to first work with a broker to help find the right mortgage product for you, as you will need to select one in your application. You can access the application form by visiting their website and selecting ‘home loans’. Then, pick your desired home loan and select ‘apply’. You will need to provide information about your financial situation, assets and liabilities and the type of property you are looking to purchase. You may also be required to submit supporting documentation, like proof of identification, payslips and tax statements. If you need some guidance, you can also contact one of their banking specialists on 13 62 27. They will then perform a credit check, verify your documents and if eligible, give you conditional pre-approval. If not, they will inform you of any issues that will need to be resolved before unconditional loan approval can be given.
If you need additional funds to complete your settlement, you can use up to $20,000 from your Macquarie offset or transaction account. You can do this from your Macquarie Mobile Banking App and transfer to an external party like your solicitor’s trust account to finish settlement. However, for amounts over $20,000 you will have to call them on 1800 007 722 to have your online transfer limit increased, and for over $100,000, you will need to complete a withdrawal form.