ING DIRECT introduces record low 3.79% variable rate home loan

Online lender ING DIRECT introduced its lowest ever interest rate on a variable home loan product today, with the Orange Advantage loan now available at just 3.79% p.a. for owner occupiers.

The new offer represents a 0.15% reduction of the former rate and is available for buyers who plan to live in the property, with an LVR of 80% or lower.

This slashed interest rate could see Aussies pay much less for their home loan. For a borrower switching from the average big 4 rate of 4.78%, the new variable rate offers savings of $290 on monthly repayments, and more than $104,500 over the life of a 30 year, $500,000 home loan.

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There are also savings on offer for borrowers who prefer the security of a fixed rate. By splitting the ING DIRECT Orange Advantage loan between fixed and variable rates, home buyers can secure a low 3.69% rate on the fixed rate portion of the loan when you lock in for a term of three years.

It comes as no surprise that the online lender is offering such great value for money. Mozo previously found that borrowing from a small, online lender could net Aussie borrowers up to $40,000 more than a home loan from one of the big 4 banks.

Similarly, the Mozo Experts Choice Awards in 2016 showed yet again that online and non-bank lenders consistently come out on top in terms of value.

Tips for snagging your low rate home loan online

1. Be organised. Since you'll be applying for the loan entirely online, you'll need to organise all your documents yourself. The key is to start early, by gathering everything from your payslips to bank accounts statements and not leave everything to the last minute.

2. Ask for one account manager to guide you through the process. While you won't have access to a bank manager that can guide you through the process face to face, you’ll feel more secure and things will likely go smoother if you have one person working on your application. That way, you won’t get lost along the way.

3. Check the fees that apply. While online lenders are known to have some of the lowest rates in the market, home loan fees, from application to ongoing service fees, can quickly add up. Make sure you’re getting a good deal by comparing home loans before taking the plunge.

4. Look at the comparison rate. Don’t have time to pour through the fine print to see which home loan comes with hidden fees attached? Luckily, your job has been made easier by the comparison rate. This takes into account the interest rate, as well as fees and charges, so you can get an idea of the “true” cost of a loan.

Ready? Head over to our home loan comparison page to check out some of the best deals on offer.