ING to cut fixed home loan rates by up to 60 basis points

One week on from the Reserve Bank’s November rate cut, ING has announced that it will be reducing rates on a number of its fixed home loans by between 5 and 60 basis points.

The changes, which come into effect this Friday (November 13), mean that the online banks’ lowest interest rate will drop to just 1.99% (3.43% comparison rate*) on a 4-year fixed term for owner occupiers.

Here’s what the new rates^ available on ING’s Fixed Rate Loan (Owner Occupiers with Orange Advantage) product for owner occupiers with an LVR below 80% will look like:

To put ING’s new 4-year fixed rate into perspective, the average 4-year fixed rate for an owner occupier in the Mozo database was 2.90% at the start of this month - so a full 101 basis points higher.

However, given that lenders have been particularly focused on fixed rate home loan cuts since the RBA decision - at least so far - our average rates are likely to drop in the coming weeks.

While ING’s decision to cut fixed rates may be welcome news to refinancers or new borrowers, existing customers with a variable rate home loan may be less thrilled. That’s because the bank also revealed that there would be no changes to variable rates.

ING isn’t alone in failing to pass on the Reserve Bank’s 15 basis point cut to variable rate customers though - none of the big four passed on the latest cut, nor did a number of other large lenders.

In fact, at the time of publishing, just nine lenders being tracked in the Mozo database have so far announced a variable rate cut of at least 15 basis points.

RELATED: November RBA cut: Which banks have cut home loan rates?

Interested in locking in your mortgage rate? Check out some of the great fixed rate offers in the table below, or head on over to the Mozo home loan comparison hub for even more deals!

^It’s worth noting that ING has stated that these new fixed rates will be available for home loans which are settled between November 13 and January 31, 2020.