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In the months following the consecutive RBA cuts in March, fixed rate offers have largely superseded variable rate offers as offering the lowest rates in the market, with a host of lenders offering fixed rate deals considerably lower than anything seen in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

Compare home loans - last updated 9 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Home Fixed Rate

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.40% p.a.
    fixed 4 years
    6.24% p.a.

    Enjoy the security of a competitive fixed 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.

  • Basic Home Loan

    Fixed, Investment, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.79% p.a.
    fixed 3 years
    6.64% p.a.

    Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.


* 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.

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