ING, Bendigo Bank among lenders to pass on full 0.50% rate hike

By Niko Iliakis · · 2 min read
Fact Checked
Advertiser disclosure

In response to the Reserve Bank of Australia’s decision to lift the cash rate by 50 basis points this month, several lenders including ING and Bendigo Bank have announced plans to increase their variable home loan rates.

ING will be bumping up its rates on 15 September. When the changes take effect, variable rates on its Mortgage Simplifier product (OO, P&I) will be 4.19% p.a. (4.22% p.a. comparison rate*) for borrowers with an LVR of 80%. 

Meanwhile, effective 16 September, Bendigo Bank’s Complete Home Loan (OO, P&I) will increase to 5.34% p.a. (5.57% p.a. comparison rate*) for borrowers with an LVR between 80-90%.

The RBA raised interest rates on Tuesday last week as part of its ongoing efforts to tame inflation. While it has acknowledged that it is not on a pre-set path, more rate hikes are expected in the coming months.

Average variable rates in Australia

 

Within a few days of the decision, ANZ, CommBank and NAB announced they intend to lift variable rates in line with the cash rate. Today, Westpac announced it will follow suit.

While many lenders are still mulling over how to respond, things will likely play out much like they did in previous months, with the majority of the lenders passing on the full rate hike to their variable rate customers. 

If they do, the average borrower with a $500,000 loan and 25 years left to pay it off could see their monthly repayments increase by around $144.

In a speech delivered last Thursday, RBA governor Philip Lowe hinted that after four consecutive months of 50 basis point increases, the pace of monetary tightening is finally due to slow down.

RELATED: How have the big four banks responded to the September RBA rate hike?

Economists at CommBank had called for a “business as usual” 25 basis point hike in October, in light of lags in the transmission of monetary policy and the risk to households posed by moving rates too high too quickly.

“Such a move would take the cash rate to 2.60 per cent,” CommBank said.

“From there our central scenario sees the RBA deliver one final 25 basis point rate hike at the November Board meeting which would take the cash rate to 2.85 per cent.”

For information on interest rates and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 4 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, Refinance Only, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.74% p.a. variable
    5.65% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Go to site
    Details
  • Home Variable Rate

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

    Go to site
    Details
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Go to site
    Details
  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

    Go to site
    Details
  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

    Go to site
    Details

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.