ING cuts fixed home loan rates ahead of Reserve Bank’s widely tipped interest rate cut

Photo by Noah Buscher on Unsplash

Popular online lender ING has jumped the gun, cutting rates on a number of its fixed home loan products for owner-occupiers and investors by up to 75 basis points.

It comes hours ahead of the Reserve Bank board meeting, where it’s widely tipped the cash rate will be cut to a new historic low of 0.75%.

Being fixed-rate cuts, they apply to new customers only and are available from today.

Owner-occupier home loan rate cuts

ING made rate cuts to its standard residential fixed home loans by up to 65 basis points.

• One-year Residential Fixed has been cut by 61 basis points to 3.24% p.a. (4.41% p.a. comparison rate*)
• Two-year Residential Fixed has been cut by 50 basis points to 3.19% p.a. (4.29% p.a. comparison rate*)
• Three-year Residential Fixed has been cut by 55 basis points to 3.19% p.a. (4.18% p.a. comparison rate*)
• Four-year Residential Fixed has been cut by 65 basis points to 3.54% p.a. (4.20% p.a. comparison rate*)
• Five-year Residential Fixed has been cut by 55 basis points to 3.54% p.a. (4.13% p.a. comparison rate*)

ING also cut fixed rates for owner-occupiers with an Orange Advantage home loan.

• One-year Orange Advantage Residential Fixed for borrowers with a loan size over $150K has been cut by 61 basis points to 3.14% p.a. (4.40% p.a. comparison rate*)
• Two-year Orange Advantage Residential Fixed for borrowers with a loan size over $150K has been cut by 50 basis points to 3.09% p.a. (4.27% p.a. comparison rate*)
• Three-year Orange Advantage Residential Fixed for borrowers with a loan size over $150K has been cut by 55 basis points to 3.09% p.a. (4.16% p.a. comparison rate*)
• Four-year Orange Advantage Residential Fixed for borrowers with a loan size over $150K has been cut by 65 basis points to 3.44% p.a. (4.17% p.a. comparison rate*)
• Five-year Orange Advantage Residential Fixed for borrowers with a loan size over $150K has been cut by 55 basis points to 3.44% p.a. (4.09% p.a. comparison rate*)

Investor home loan rate cuts

Investors haven’t missed out, with rates being cut by up to 75 basis points for borrowers making principal and interest(P&I) repayments.

• One-year Investment Fixed for borrowers making P&I repayments has been cut by 75 basis points to 3.54% p.a. (5.04% p.a. comparison rate*)
• Two-year Investment Fixed for borrowers making P&I repayments has been cut by 70 basis points to 3.49% p.a. (4.88% p.a. comparison rate*)
• Three-year Investment Fixed for borrowers making P&I repayments has been cut by 60 basis points to 3.49% p.a. (4.75% p.a. comparison rate*)
• Four-year Investment Fixed for borrowers making P&I repayments has been cut by 75 basis points to 3.84% p.a. (4.74% p.a. comparison rate*)
• Five-year Investment Fixed for borrowers making P&I repayments has been cut by 75 basis points to 3.84% p.a. (4.64% p.a. comparison rate*)

For investors wishing to make interest-only (IO) repayments, fixed rates were cut by up to 50 basis points

• One-year Investment Fixed for borrowers making IO repayments has been cut by 50 basis points to 3.79% p.a. (5.41% p.a. comparison rate*)
• Two-year Investment Fixed for borrowers making IO repayments has been cut by 45 basis points to 3.74% p.a. (5.29% p.a. comparison rate*)
• Three-year Investment Fixed for borrowers making IO repayments has been cut by 35 basis points to 3.74% p.a. (5.18% p.a. comparison rate*)
• Four-year Investment Fixed for borrowers making IO repayments has been cut by 50 basis points to 4.09% p.a. (5.17% p.a. comparison rate*)
• Five-year Investment Fixed for borrowers making IO repayments has been cut by 50 basis points to 4.09% p.a. (5.09% p.a. comparison rate*)

Looking for a low rate home loan? Take a look at the deals below.

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

• The big four banks are: ANZ, CBA, NAB and Westpac
• The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
• The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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