ING raises variable mortgage rates as cash rate hike bets mount
- ING increased some owner occupier variable home loan rates by 5 basis points
- Mortgage Simplifier rates now start from 6.04% p.a. for eligible borrowers
- The changes follow fixed-rate hikes from major banks
- Major bank economists and financial markets expect the cash rate to rise to 4.60% next week
ING nudged some of its variable mortgage rates up by five basis points on Wednesday.
The increase was applied to Mortgage Simplifier and Orange Advantage home loans for owner occupiers with loan-to-value ratios (LVRs) of up to 80%.
The latest changes have lifted the lowest rate on ING's basic home loan Mortgage Simplifier to 6.04% p.a. (6.07% p.a. comparison rate) for LVRs 70% and below.
For owner occupier home loans with offset, available through Orange Advantage, the lowest rate is now 6.19% p.a. (6.48% p.a. comparison rate).
On the same day, ING, currently Australia's sixth-largest lender, slashed five basis points off Orange Advantage loans with LVRs above 80%.
See below some of ING's variable-rate home loans for owner occupiers making principal and interest (P&I) repayments.
Product | LVR | New rate (change) | Comparison rate |
Mortgage Simplifier | 70% and below | 6.04% p.a. (+5 bps) | 6.07% p.a. |
Mortgage Simplifier | 80% and below | 6.09% p.a. (+5 bps) | 6.12% p.a. |
Orange Advantage Variable | 70% and below | 6.19% p.a. (+5 bps) | 6.48% p.a. |
Orange Advantage Variable | 80% and below | 6.19% p.a. (+5 bps) | 6.48% p.a. |
Orange Advantage Variable | More than 80% | 6.29% p.a. (-5 bps) | 6.58% p.a. |
Orange Advantage investor loans with LVRs of up to 90% also saw cuts of up to 10 basis points, bringing the new rate of the P&I product down to 6.49% p.a. (6.52% p.a. comparison rate).
Banks adjusting rates higher
ING's latest home loan changes come after it boosted select term deposit rates, as banks compete more aggressively for deposits ahead of a potential cash rate hike.
Term deposit providers, including the big four, have been tinkering with rates, offering higher returns as expectations of another cash rate hike strengthen.
Ahead of next week's RBA monetary policy board meeting, all big four banks are aligned in forecasting an increase to the cash rate this September, with ANZ saying there'll be a follow up in November.
See also:
- Big four banks now tip September cash rate increase
- Big four banks play tag on top term deposit rates
Cash rate hike bets strengthen
All four major banks, including fifth-largest lender Macquarie, have now raised fixed home loan rates this month.
The moves have been widely seen as part of broader repricing as funding costs rise and expectations of further cash rate increases strengthen.
Speaking at a Committee for Economic Development of Australia (CEDA) event in Sydney on Tuesday, RBA Governor Michele Bullock said the 4.5% unemployment rate was still "a bit tight".
Despite the jobless rate rising from recent lows, Gov Bullock said that between 4.5% and 5% would "probably take enough heat out of the labour market" to ease inflation pressures.
"We read that as the Bank seeing the balance of risks for policy shifting only if unemployment threatens to push through 5% inside the next year or so," NAB head of rates strategy Ken Crompton said.
The ABS will release the latest jobs data on Thursday.
Gov Bullock also reinforced there was still excess demand in the economy and noted that while AI appeared to be supporting demand, there was little evidence yet of meaningful productivity gains.
As at 22 September, financial markets were pricing in almost a 90% chance of the cash rate increasing to 4.60% at the RBA's next meeting.
While unchanged from the previous day, NAB said Gov Bullock's hawkish remarks helped push the implied terminal rate in the overnight indexed swap (OIS) market back to just above 5.00% by August 2027.
This indicates investors expect rates to remain higher for longer.
Gov Bullock's comments were accompanied by similarly hawkish messages from other RBA officials.
At the CEDA event, Assistant Governor Sarah Hunter emphasised the need to prevent higher energy prices from feeding into inflation expectations and broader price-setting behaviour.
Meanwhile, CommBank economists noted RBA Board member Iain Ross was more dovish, arguing that a 1970s‑style wage‑price spiral remained unlikely.
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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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
