ING Direct drops interest on fixed-rate home loans

ING Direct has announced that interest rates on its one and two-year fixed home loans have been cut further.

The company asserted that its new 6.09 per cent per annum package is "among the lowest on the market".

Brett Morgan, executive director for the firm, said one of the benefits of the firm's fixed rate loan is that repayments of up to $10,000 a year are permitted.

"We've seen a strong uptake of fixed rate loans on our own portfolio because we’re able to offer a rate which is significantly lower than most variable rates due conditions in the wholesale funding markets," he commented.

As well as the cut to its one and two-year packages, ING Direct has also cut its three-year product's interest rate to 6.19 per cent.

All of the reductions came into effect at the end of last week (November 11th).

This comes after a study by ING Direct published last month revealed that 28 per cent of Aussies will focus on reducing their debt over Christmas rather than spending money on gifts.

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