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*)

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
6.14% p.a.
6.01% p.a.
$2,434
Principal & Interest
Fixed
$0
$0
90%
Free Redraw Facility
6.35% p.a.
6.26% p.a.
$2,489
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%
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.

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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