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

Emma Duffy By on October 1, 2019
 
ing cut rates

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.

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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.

Provider Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Purchase or Refi, P&I 80% Smart Home Loan 2.88% 2.90% $1,660 More details
Discount Variable 80% 3.07% 3.09% $1,702 More details
Base Variable Rate Special P&I 3.20% 3.24% $1,730 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Purchase or Refi, P&I 80% Smart Home Loan
2.88% 2.90% $1,660
More details
Discount Variable 80%
3.07% 3.09% $1,702
More details
Base Variable Rate Special P&I
3.20% 3.24% $1,730
More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 17 October 2019. View disclaimer.

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 2018. 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

In the interests of full disclosure, Savings.com.au 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 includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

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Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.
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