The home loans to get the 40 basis point hike are interest-only (IO) loans:
- Investment Fixed IO 1 Year: Up to 3.29% p.a. (5.01% p.a. comparison rate*)
- Investment Fixed IO 5 Years: Up to 3.64% p.a. (4.69% p.a. comparison rate*)
Other fixed interest-only loans for both investors and owner-occupiers also saw a rate hike by between five and 40 basis points.
Loans paying principal and interest (P&I) also saw some raises to interest rates, including:
- Residential Fixed 1 Year: 15 basis point rise to 2.44% p.a. (3.97% p.a. comparison rate*)
- Residential Fixed 2 Years: 10 basis point rise to 2.29% p.a. (3.80% p.a. comparison rate*)
- Residential Fixed 3 Years: 20 basis point rise to 2.44% p.a. (3.70% p.a. comparison rate*)
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.24% p.a. | 6.29% p.a. | $2,460 | Principal & Interest | Fixed | $0 | $0 | 90% | Free Redraw Facility | ||||||||||
6.09% p.a. | 6.19% p.a. | $2,421 | Principal & Interest | Fixed | $0 | $350 | 80% | |||||||||||
6.69% p.a. | 7.77% p.a. | $2,578 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||
6.69% p.a. | 7.19% p.a. | $2,578 | Principal & Interest | Fixed | $0 | $160 | 80% |
Four and five-year fixed terms also saw interest rate rises, so too did the 'Orange Advantage' packaged loans fixed for between one and five years.
Term deposits also got some attention, with the three, six and nine-month term deposits being cut by 25 basis points - down to 0.85%, 1.05%, and 1.05% per annum respectively.
One-year and two-year term deposit interest rates were also cut by 25 basis points, each down to 1.15% p.a.
The news comes after NAB reduced some home loan interest rates yesterday.
However, lenders raising some home loan interest rates is nothing new - last week Newcastle Permanent did so, and in recent weeks both ANZ and ME Bank did as well.
Even with the hikes, ING is still comparable to other competitors in the fixed owner-occupier market paying P&I, as can be seen in the comparison table (below).
An ING spokesperson has been contacted for comment.
Westpac subsidiaries cut interest rates
St. George Bank and the Bank of Melbourne cut home loan interest rates by up to 25 basis points today.
The biggest cuts were to low LVR loans below 80%, requiring new mortgages or refinances to have a deposit of 20% or greater.
Both made cuts to the same products - primarily fixed loans. In the case of St. George Bank, some key changes are below:
- Residential Fixed IO 1 Year 60% LVR: 25 basis point cut to 3.74% p.a. (5.19% p.a. comparison rate*)
- Investment Fixed P&I 1 Year <60% LVR: 10 basis point cut to 2.94% p.a. (4.99% p.a. comparison rate*)
The lowest-rate home loan to see any sort of cut was to the Advantage Package Investment home loan, fixed for two years paying P&I with a maximum LVR of 60%.
This rate received a ten basis point cut to 2.59% p.a. (3.92% p.a. comparison rate*).
A multitude of other home loans were also cut, including packaged home loans, products paying P&I and products paying interest only, fixed anywhere from one to five years.
While the advertised rates look the same across the two banks, it's important to check with your lender on the comparison rate, as some differences could occur.
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