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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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 August 7, 2022. View disclaimer.


Photo by Laure Noverraz on Unsplash



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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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