ING lifts rates: Is the time coming to fix your home loan rate?

Australia's fifth largest mortgage lender, ING, has increased interest rates on a number of its sharpest fixed home loans today. 

The changes will impact both its Fixed Rate Loan and Fixed Rate Loan (Owner Occupiers with Orange Advantage) offers, with increases of between five and 20 basis points depending on the fixed term length. As a result, ING’s lowest rate is now 2.19% (3.79% comparison rate*) for a 2-year term. 

Until recently ING had held the market leading position in the Mozo database for a number of fixed mortgage rates, though even with today's changes it remains competitive across all fixed terms and it still offers the lowest 5-year fixed rate in our database.

“We can only speculate on the driving factors behind the decision, but whatever the reason, ING’s fixed rates are still very competitive,” says Mozo Banking Expert, Peter Marshall. 

“It could be the case that they’ve taken on enough customers with their previous sharp offers, or perhaps their net interest margin is under pressure on another front.”

Here’s a look at the new market leading fixed rates in the Mozo database following ING’s changes, as well as the Mozo average rate for each term:

TermLeaderFixed rate Average
1-yearNewcastle Permanent2.18% (3.83% comparison rate*)2.62%
2-yearHSBC2.09% (3.09% comparison rate*)2.59%
3-yearbcu2.16% (3.64% comparison rate*)2.65%
4-yearHSBC2.40% (3.13% comparison rate*)2.99%
5-yearING2.54% (3.50% comparison rate*)3.00%

In the months following the consecutive RBA cuts in March, fixed rate offers have largely superseded variable rate offers as offering the lowest rates in the market, with a host of lenders offering fixed rate deals considerably lower than anything seen in recent years. 

So with fixed rates seemingly in vogue, are there any factors borrowers might want to consider that they wouldn't normally with a variable rate?

To fix, or not to fix?

While the repayment certainly that comes with a fixed rate mortgage may be a huge bonus for borrowers wanting to balance their budgets, one thing they’ll want to keep an eye on down the track is the revert rate attached to loan.

As Marshall explains, the revert rate is the rate that the loan will switch back to following the fixed period - whether that’s after one, three or five years.

“Revert rates tend to be much higher than the fixed rate on offer,” he says.

“While that doesn’t really matter during the period in which the fixed rate applies, it’s certainly worth remembering to consider switching if you don’t like the rate your loan will be reverting to at the end of the fixed term.”

While fixed rates are at some of the lowest levels in years, Marshall also reminded buyers and refinancers that they don’t always have to lock in a fixed rate for 100% of the loan. There’s often the option to opt for a split rate.  

“While it’s always difficult to tell which way the market will move, if you’re looking to fix a rate at say 2.20% - 2.30% for the next three years, that’s a really great rate. Even if rates do go below that point there’s not much room for a downside.” 

“However, if you’re not fully prepared to lock in a rate one option is to fix half of your loan and leave the other half as a variable rate. That way if variable rates go down you’ll obviously benefit, but if variable rates start to go up you’ll always have the option of fixing that portion of the loan as well.”

RELATED: ING crowned Australia’s Best Bank for second straight year

Ready to explore your fixed rate options? Check out some of the hottest fixed rate offers below, or broaden your horizons by checking out the latest rates from a whole range of lenders using the Mozo home loan comparison tables.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans using the filters below.
Last updated 13 July 2024 Important disclosures and comparison rate warning*
  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    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.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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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. 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

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