ING cuts variable home loan rates after raising fixed rates last week

author-avatar By on June 25, 2020
ING cuts variable home loan rates after raising fixed rates last week

By R/DV/RS on Flickr

Today ING cut a few variable home loan interest rates by up to 19 basis points, after raising some fixed loans by up to 40 basis points last week.

Last week's biggest hikes were to the one and five-year fixed investment home loans paying interest-only (IO), while a number of other fixed loans also saw slight increases in their interest rates.

Some ING term deposit interest rates were also slashed last week.

Today, ING balanced the seesaw by cutting variable home loans for owner-occupiers by up to 19 basis points, namely to the Orange Advantage and Mortgage Simplifier product lines paying principal and interest (P&I).

Some key cuts were:

  • Orange Advantage 150-499k 80%: Down to 2.64% p.a. (2.98% p.a. comparison rate*)
  • Orange Advantage 150k+ 95%: Down to 2.94% p.a. (3.28% p.a. comparison rate*)
  • Mortgage Simplifier 150k-499k 80%: Down to 2.59% p.a. (2.62% p.a. comparison rate*)
  • Mortgage Simplifier 150k+ 95%: Down to 2.89% p.a. (2.92% p.a. comparison rate*)

The lowest advertised rate to see a cut was to the Mortgage Simplifier product line lending $1 million or more with a max loan-to-value ratio of 80%, which is now down to 2.55% p.a. (2.58% p.a. comparison rate*).

The main difference between the two ING product lines is that with the Mortgage Simplifier borrowers pay no ongoing fees, while Orange Advantage loans come with a 100% offset facility.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.


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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author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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