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

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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:

RateChange
1-year fixed2.19% (3.95% comparison rate*)-0.15%
2-year fixed2.09% (3.77% comparison rate*)-0.10%
3-year fixed2.04% (3.60% comparison rate*)-0.30%
4-year fixed1.99% (3.43% comparison rate*)-0.60%
5-year fixed2.19% (3.37% comparison rate*)-0.40%

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.

Compare fixed home loans - rates updated daily

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  • placeholder
    UHomeLoan (1 Yr Fixed)

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.79% p.a.
    fixed 1 year
    2.18% p.a.
    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.67% p.a.
    Go to site
    Details
  • placeholder
    Own Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    fixed 2 years
    2.59% p.a.
    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan (Premium Plus Package, LVR <80%)

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.24% p.a.
    fixed 2 years
    3.73% p.a.
    Go to site
    Details
  • placeholder
    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.05% p.a.
    fixed 2 years
    1.92% p.a.
    Go to site
    Details

* 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.

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