ING slashes variable rates, bumps up fixed options

By Niko Iliakis · Last updated Thursday, 11 November 2021 · 2 min read

Fact Checked

ING has made a number of changes to its home loan suite today, cutting variable rates by as many as 25 basis points while also hiking fixed rates across 2, 3, 4, and 5-year terms.

The online bank’s Orange Advantage loan saw cuts ranging from 15 to 25 basis points across various LVR tiers. Owner occupiers borrowing between $500,000 and $999,000 (LVR ≤80%) can now take advantage of a 2.04% p.a. variable rate (2.40% p.a. comparison rate*).

Similar sized cuts were levelled against ING’s Mortgage Simplifier option. Currently, owner occupiers taking out a loan of between $500,000 and $999,000 (LVR ≤80%) can access rates as low as 1.99% p.a. (2.02% p.a. comparison rate*).

ING also raised a number of fixed rates, some by as many as 50 basis points, reflecting a renewed belief that the RBA will be forced to tighten monetary policy in the next few years.

While there are still plenty of fixed rates on the market below the 3% mark, lenders are likely trying to steer customers away from these still attractive options and towards their variable rate loans.

At the time of writing, the average variable rate among lenders we track sits at 3.10% p.a. — well above the average 2-year fixed rate of 2.29% p.a. and slightly higher than the average 4-year rate of 2.75% p.a.

We’ve included a quick overview of various fixed and variable ING products below, but for an in-depth look at what’s currently available on the market, visit our home loan comparison page.

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Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

Mortgage Simplifier

Variable rates from 1.99% p.a. (2.02% p.a. comparison rate*)
No service or application fees
Free extra repayments and redraw facility

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I want to refinance

ING’s Mortgage Simplifier lets borrowers access rates as low as 1.99% p.a. (2.02% p.a. comparison rate*), however the rate you receive will depend on your LVR and the size of the loan. You’ll be able to borrow between $50,000 to $2 million, split your loan, and make extra repayments without having to pay for the privilege. A redraw facility is also available in case you want to retrieve those extra funds down the track.

Borrowers are also sure to appreciate ING’s Everyday round up feature. This automatically rounds up purchases made on your Orange Everyday transaction account to the nearest $1 or $5 and puts the difference towards your mortgage. Just keep in mind that there are a few fees that come with this loan, such as the $299 settlement fee and $250 discharge fee.

Orange Advantage (Package)

Variable rates from 2.04% p.a. (2.40% p.a. comparison rate*)
100% offset account
Free extra repayments and redraw facility

Find out more

The Orange Advantage package deal leaves very little off the table, combining variable rates as low as 2.04% p.a. (2.40% p.a. comparison rate*) with a number of handy features to help you save on interest. You’ll be able to make free extra repayments, access a redraw facility, and use an offset account to reduce the balance on which interest is charged. The Everyday round up feature can also channel any spare change you have towards paying off your loan.

You can also receive $3,000 cashback when refinancing a loan of at least $500,000 (80% LVR) from another lender, so long as you apply by 31 Dec 2021, settle by 31 March 2022, and open an Orange Everyday account within 70 days. There are, however, a few fees you’ll need to budget for, including the $299 settlement fee, $299 yearly service fee, and $250 discharge fee.

Fixed Rate Loan with Orange Advantage

1-year fixed rate of 2.04% p.a. (3.94% p.a. comparison rate*)
Extra repayments allowed up to $10,000 p.a.
$3,000 cashback offer (terms and conditions apply)

Find out more

Like the idea of locking in a fixed rate instead? ING’s Fixed Rate Loan (with Orange Advantage) lets you do just that with 1-5 year terms available and fixed rates as low as 2.04% p.a. (3.94% p.a. comparison rate*) on a 1-year term for owner occupiers with an LVR under 80%. ING also allows borrowers to make up to $10,000 in extra repayments each year during the fixed period.

In terms of other costs, there are one-off settlement ($299) and discharge ($250) fees to consider, plus borrowers will want to pay attention to the revert rate (4.10% p.a.) as they near the end of their fixed rate period. Last but not least, ING is currently offering $3,000 cashback to eligible refinancers who are willing to switch an existing loan of $500,000 (max. 80% LVR) or more over to ING. Applications will need to be received by 31 December 2021 and settled by 31 March 2022 (terms and conditions apply).

^* 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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