ING slashes fixed interest rate home loans to lowest yet following RBA cut
Following the Reserve Bank of Australia’s cut on Tuesday, online bank ING has dropped rates on its 1, 2, 3, 4 and 5 year fixed interest home loans by as much as 0.40 basis points!
Rates for the ING Fixed Rate Loan now make up the lowest fixed rates in the Mozo database, starting from as little as 2.59% p.a. (3.92% p.a. comparison rate*) for three years.
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ING goes after new customers
Mozo’s interest rate expert, Peter Marshall suggested that this move could be a strategy to try and get new customers through the door.
“It’s really easy for a bank to decide to take an aggressive market position with their fixed home loan rates, because it doesn’t affect their existing customer base - it will only benefit new people coming in,” Marshall said.
“In this case, working on a slim margin to attract new customers could just be the price of getting a new customer relationship and perhaps getting someone in the door who has never used the bank before.”
As Marshall pointed out, this new strategy seems to be one of a few ING have implemented recently to try and get new customers on board.
Another includes offering refer-a-friend reward to existing customers. Not only will existing ING customers (in receipt of the offer) receive up to $100 for every friend they successfully refer, but new referred customers will also receive the same amount for signing up and meeting all the conditions.
“$200 for a new customer, that’s really making a grab for a share of the market,” commented Marshall.
He then went on to add that other providers will likely follow suit in cutting fixed interest rates and that it is highly probable that the RBA will cut the official cash rate by another 25 basis points, in the next few months.
That said, even if variable rates drop further, it is good to remember that fixed rates may also protect you from potential rate rises.
Want more fixed interest rate home loan options? Why not head to our fixed rate home loans comparison page to see what else is out there right now. Happy house hunting!
* 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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