The bank has cut the rates of both its owner occupied and investment fixed rate mortgages by up to 25 basis points, effective from Thursday.

ING customers who fix their rates for three or four years will now pay 5.34% p.a in interest, while five years drops to 5.44% p.a, among the lowest longer fixed term rates available in Australia.

Meanwhile, rates on one and two year fixed products with ING will drop by 0.20% p.a.

The announcement comes the day after monthly Consumer Price Index (CPI) figures that showed inflation continued to ease in February, throwing more weight behind suggestions an RBA rate pause in April is increasingly likely.

ING rate cuts

Loan Length Min LVR Rates (basis point change)
Investment fixed P&I 1 or 2 years <80% 5.64% p.a (-0.2)
Investment fixed P&I 3 or 4 years <80% 5.54% p.a (-0.25)
Investment fixed P&I 5 years <80% 5.64% p.a (-0.25)
Owner occupied  1 or 2 years <80% 5.54% p.a (-0.2)
Owner occupied  3 or 4 years <80% 5.44% p.a (-0.25)
Owner occupied  5 years <80% 5.54% p.a (-0.25)
Owner occupied  1 or 2 years 80-90% 5.64% p.a (-0.2)
Owner occupied  3 or 4 years 80-90% 5.54% p.a (-0.25)
Owner occupied 5 years 80-90% 5.64% p.a (-0.25)

This also reflects a broader market change, with RBA data (below) indicating that longer term fixed-rate home loans tapered slightly in recent months.

Rate pause in April?

In light of the collapse of Silicon Valley Bank and low confidence in banking across the world, Westpac Chief Economist Bill Evans now expects a pause in the RBA cash rate hikes in April and bought his terminal prediction down from 4.1% to 3.85%.

"Even if the markets settle by the time of the RBA's April board meeting there will be sufficient uncertainty for a prudent board that was already clearly open to a pause to take that option,” Mr Evans said.

This prediction was despite his belief that February CPI would reveal an increase in inflation, so the drop we saw will likely have solidified his position.

On Thursday CBA economists also echoed the call.

"In what we believe is a very close call, we now expect the RBA to leave the cash rate on hold at 3.6% at the April Board meeting. We ascribe a 55% chance to no change and a 45% probability to a 25 basis point rate increase to 3.85%," they said.

On the other hand, senior economists at ANZ say the CPI data still showed strong 'inflation momentum', and continue to believe there will be a 25 basis point increase in April.


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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.09% p.a.
6.11% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Picture from ING

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