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:
| Rate | Change | |
| 1-year fixed | 2.19% (3.95% comparison rate*) | -0.15% |
| 2-year fixed | 2.09% (3.77% comparison rate*) | -0.10% |
| 3-year fixed | 2.04% (3.60% comparison rate*) | -0.30% |
| 4-year fixed | 1.99% (3.43% comparison rate*) | -0.60% |
| 5-year fixed | 2.19% (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.
Fixed home loan comparisons on Mozo
-
Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.74
%
p.a.
Fixed 3 years
- Comparison rate
-
6.81
%
p.a.
- Initial monthly repayment
-
$2,915
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- interest rate
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
- Special Offers
-
$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
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Your selected home loans
* 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.
^See information about the Mozo Experts Choice Home Loan Awards
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