ING moves on fixed home loan rates

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One of Australia’s largest home loan lenders, ING, has announced that it will be making a number of changes to its fixed rate home loans, including the introduction of tiered pricing for different loan-to-value ratios (LVRs).

Coming into effect tomorrow (May 26), the changes will affect new owner occupier customers on the bank’s Fixed Rate Loan and Fixed Rate Loan (with Orange Advantage) home loan products.

These include cuts of between 15-35 basis points on shorter fixed rate terms (1-3 years) and increases of between 20-35bp on longer fixed rate terms (4-5 years).

As a result, the lowest fixed rates available to owner occupiers with the ING Fixed Rate Loan (with Orange Advantage) will be:

  • 1-year: 2.04% (3.94% comparison rate*)
  • 2-year: 1.84% (3.73% comparison rate*)
  • 3-year: 1.89% (3.56% comparison rate*)
  • 4-year: 2.34% (3.54% comparison rate*)
  • 5-year: 2.49% (3.48% comparison rate*)

ING will also be rolling out a new tiered pricing system tomorrow for borrowers with varying loan-to-value ratios (LVRs).

The new system, which will only apply to new borrowers, will expand the existing number of tiers to include specific rates for LVRs below 80%, between 80%-90% and above 90%.

How do ING’s new rates stack up?

There’s been a fair bit of action in the fixed rate home loan market of late, with plenty of lenders having already made the same moves as ING: sharpening shorter term rates and lifting longer ones.

So with all this movement, how will ING’s new fixed rates actually compare?

Well, ING’s new rates on the Fixed Rate Loan (with Orange Advantage) will be among the ten lowest in the Mozo database for 2-year and 3-year terms. And while not among the very lowest around, the 1-year, 4-year and 5-year fixed rates will also be quite competitive.

For comparison, here are the lowest fixed rates currently in the Mozo database as well as the average fixed rates, both of which are for owner occupiers^.

TermRate leaderFixed rateAverage
1-yearbcu1.67% (3.84% comparison rate*)2.32%
2-yearHomestar1.74% (2.23% comparison rate*)2.29%
3-yearCredit Union SA1.79% (3.33% comparison rate*)2.31%
4-yearBankVic1.95% (2.72% comparison rate*)2.48%
5-yearUBank2.24% (2.33% comparison rate*)2.69%

RELATED: ING crowned 2021 Mozo Experts Choice Home Lender Bank of the year

Interested in comparing even more mortgage offers? Head on over to the Mozo home loan comparison tables for the latest rates, fees and features from a range of lenders.

Or if it’s a fixed home loan rate you’re looking for then check out the hot offers below (including ING’s).

Compare fixed home loans - last updated 2 July 2022

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

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

    interest rate
    comparison rate
    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    3.59% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.

    Details

^Based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average home loan rates, check out our dedicated Australian home loan statistics page.

* 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

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.

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