ING and others continue the fixed mortgage squeeze

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on December 03, 2021 Fact Checked
ING and others continue the fixed mortgage squeeze

On Friday ING increased interest rates on a number of fixed-rate loans, and earlier in the week a number of other lenders did similar.

These increases come a day after NAB increased rates on fixed home loans.

One ING home loan was increased by 50 basis points - 0.50% or half a percentage point - and that went to the investment five year fixed loan paying principal & interest (P&I).

It is now 3.59% p.a. (4.31% p.a. comparison rate*).

A range of other home loan rates fixed between two and five years were also increased.

Some notable changes for owner occupiers included:

  • Residential Fixed 2 Years 80%: 30 basis point increase to 2.59% p.a. (3.86% p.a. comparison rate*)
  • Residential Fixed 3 Years 80%: 30 basis point increase to 2.99% p.a. (3.84% p.a. comparison rate*)
  • Residential Fixed 4 Years 80%: 40 basis point increase to 3.29% p.a. (3.85% p.a. comparison rate*)
  • Residential Fixed 5 Years 80%: 40 basis point increase to 3.49% p.a. (3.88% p.a. comparison rate*)

In September 2020, the four-year rate was as low as 2.09% p.a. (3.46% p.a. comparison rate*).

A 120 basis point difference on a $400,000 30-year home loan equates to $253 a month in extra interest paid.

And for investors:

  • Investment Fixed 2 Years: 20 basis point increase to 2.69% p.a. (4.42% p.a. comparison rate*)
  • Investment Fixed 3 Years: 40 basis point increase to 3.09% p.a. (4.35% p.a. comparison rate*)
  • Investment Fixed 4 Years: 40 basis point increase to 3.39% p.a. (4.33% p.a. comparison rate*)

One notable feature of the latest spate of rate hikes is that one-year fixed-rate home loans were often left untouched or even reduced.

BCU increases

The Coffs Coast credit union increased rates on fixed-rate home loans, albeit at subtler increments.

Some noteworthy changes included:

  • Residential Fixed P&I 3 Years: 10 basis point increase to 2.39% p.a. (3.63% p.a. comparison rate*)
  • Residential Fixed P&I 5 Years: 15 basis point increase to 2.99% p.a. (3.63% p.a. comparison rate*)

Various investment home loans were also increased by similar increments.

IMB changes

While IMB increased rates on a few fixed-rate home loans, it also decreased rates on variable ones.

'Budget' and 'Essentials' variable-rate home loans for owner occupiers were decreased by 4 to 5 basis points.

Meanwhile, a couple of increases included:

  • Investment Fixed P&I 3 Years: 19 basis point increase to 2.54% p.a. (3.37% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 19 basis point increase to 3.18% p.a. (3.49% p.a. comparison rate*)

These investment home loans have a maximum LVR of 90%

86 400 cuts

86 400 focused solely on rate cuts this week, namely to variable-rate investment home loans.

Home loans were decreased by between 15 and 25 basis points, and a couple of changes included:

  • Own Home Loan P&I 80%: 20 basis point cut to 2.59% p.a. (2.87% p.a. comparison rate*)
  • Neat Home Loan P&I 80%: 25 basis point cut to 2.34% p.a. (2.35% p.a. comparisonrate*)

The main point of difference between the 'Own' and 'Neat' products is that Own home loans come with an offset account.


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

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 17, 2022. View disclaimer.


Photo by Laure Noverraz on Unsplash

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 is passionate about breaking down complex financial topics for the everyday consumer.

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