ING and ME Bank latest home loan lenders to make cuts

This afternoon, we learned that ING will be reducing rates for its variable home loan products by 0.20%. And while that’s five basis points shy of the full 0.25% cut, it still sees several ING home loans among the more competitive in the market.

The changes will apply to both new and existing customers, and will take effect on 18 July. Once in place, we’ll see variable rates for the ING Orange Advantage Home Loan (Package) go as low as 3.23% p.a. (3.56% p.a. comparison rate*).

“The decision to pass on only part of this week's cut isn't surprising. I expect that most banks will hold on to some of the latest reduction in the cash rate this time around,” said Mozo’s banking expert, Peter Marshall.

“As we get closer to an official interest rate of 0% banks’ interest margins are squeezed as there is only so far they can cut the rates they have to pay to attract deposit, which they need to help fund loans for mortgages.”

ME Bank also opted to pass on only 0.15% of the cut to its home loan customers, after passing on the full 0.25% rate cut last month. The changes will come into effect on 23 July, and will apply to both new and existing customers. 

One day on, few lenders have passed on full cut

It’s been a full day since the Reserve Bank announced it will be reducing the cash rate, and while all four major banks made their plans known within a few hours of the decision, most lenders are still dragging their feet. 

Including the Big 4, we’ve recorded activity from 17 lenders. Of these, five have passed on the full cut to customers: ANZ, Athena Home Loans, Homestar, Greater Bank, and State Custodians.

As news from other lenders continues to trickle through, we’ll be keeping tabs on our Naughty or Nice table. Check in periodically to see where your lender falls, and if their decision leaves you wanting to make the switch, head over to our variable rate home loan comparison page for some more attractive options.

Hot home loan deals - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

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    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

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    UHomeLoan (1 Yr Fixed)

    Owner Occupier, Principal & Interest

    interest rate
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    Initial monthly repayment
    1.79% p.a.
    fixed 1 year
    2.32% p.a.

    Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.

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    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Special rate applies to home loan applications submitted by 31 July 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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