A win for Aussie borrowers as ING slash home loan rates
Popular bank and home loan provider ING are set to cut home loan rates for new borrowers by 17 basis points tomorrow, on both their Orange Advantage and Mortgage Simplifier owner occupier, principal and interest home loans.
The 80% LVR packaged rate on the Orange Advantage loan, for balances between $500k and $1m, has dropped from 3.85% (4.17% comparison rate*) to a low 3.68% (4.00% comparison rate*), while the Mortgage Simplifier rate has dropped from 3.80%(3.82% comparison rate*) to 3.63% (3.66% comparison rate*).
“Owner occupier borrowers making principal and interest repayments are often offered the best rates as they are typically the least risky loans that banks can have on their books,” Peter Marshall, Mozo’s Product Data Manager said.
“ING's rate cuts are a sign they are looking to grab a larger slice of the mortgage market so they are targeting those premium borrowers with some really sharp rates.”
UPDATE 5/6/19: ING announced today that they will be cutting their standard variable home loan rate by 0.25% for all new and existing customers, following the RBA rate cut, effective from 25 June 2019.
What will the ING home loan rates look like?
Orange Advantage Loan
| Balance | LVR | Old Rate | New Rate | Change |
|---|---|---|---|---|
| $1m+ | < 80% | 3.81% (4.13% comparison rate*) | 3.64% (3.96% comparison rate*) | -0.17% |
| $500k - $999k | < 80% | 3.85% (4.17% comparison rate*) | 3.68% (4.00% comparison rate*) | -0.17% |
| $150k - $499k | < 80% | 3.85% (4.17% comparison rate*) | 3.68% (4.00% comparison rate*) | -0.17% |
| $150k+ | > 80% < 90% | 3.95% (4.27% comparison rate*) | 3.78% (4.10% comparison rate*) | -0.17% |
| $150k+ | > 90% | 4.15% (4.46% comparison rate*) | 3.98% (4.30% comparison rate*) | -0.17% |
Mortgage Simplifier
| Balance | LVR | Old Rate | New Rate | Change |
|---|---|---|---|---|
| $1m+ | < 80% | 3.76% (3.79% comparison rate*) | 3.59% (3.62% comparison rate) | -0.17% |
| $500k - $999k | < 80% | 3.80% (3.82% comparison rate*) | 3.63% (3.66% comparison rate*) | -0.17% |
| $150k - $499k | < 80% | 3.80% (3.82% comparison rate*) | 3.63% (3.66% comparison rate*) | -0.17% |
| $150k+ | > 80% < 90% | 3.90% (3.92% comparison rate*) | 3.73% (3.76% comparison rate*) | -0.17% |
| $150k+ | > 90% | 4.10% (4.12% comparison rate*) | 3.93% (3.95% comparison rate*) | -0.17% |
ING aren’t the only ones with home loan rate cuts on their minds
With the next Reserve Bank Australia meeting fast approaching next Tuesday, borrowers around the country may be hoping to see the highly anticipated rate decrease finally take effect.
But, the delay hasn’t stopped many other Australian lenders from slashing rates though, with dozens of them already making changes to their variable and fixed home loan rates before any decision has been made.
In recent weeks, online lenders like loans.com.au, Tic:Toc and Mortgage House have also cut their rates, meaning borrowers can now snag an ultra low variable interest rate as low as 3.48%, as opposed to the average rate of 4.32%.
RELATED: New way to borrow takes Australia by storm
To find out more about the features on ING’s home loans read our ING Home loan review or to check out how the new ING rates compare to others in the market, head over to our home loan comparison tool.