ING raises home loans rates by up to 40bps, slashes term deposits

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on June 19, 2020
ING raises home loans rates by up to 40bps, slashes term deposits

Image Source: ING Group on Flickr

Today, ING raised interest rates on many fixed home loans by up to 40 basis points, while also cutting some term deposit rates by 25 basis points.

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

Fixed
More details
No ongoing feesFree redraw facility
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

    Fixed
    More details
    NO UPFRONT OR ONGOING FEES
    NO UPFRONT OR ONGOING FEES

    Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

      Fixed
      More details

      Fixed Rate Home Loan (Principal and Interest) 3 Years

        Fixed
        More details

        Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 30, 2022. View disclaimer.

          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.


          Disclaimers

          The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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