ING may have given wishful property purchasers and refinancers a rate cut just hours before the Reserve Bank of Australia (RBA) board is expected to emerge from its September meeting on news of a cash rate hold.
The major bank wiped as much as 30 basis points off some of its fixed rate line up on Tuesday morning.
It now advertises fixed rates as low as 4.89% p.a. (comparison rates* from 5.39%) for select owner-occupiers willing to fix their rate for two years.
That rate is available to buyers or refinancers with deposits or equity worth 20% of their property's value (ergo, loan-to-value ratios (LVRs) of up to 80%) who select the bank's Orange Advantage package option.
The Orange Advantage package offers reduced home loan interest rates but demands a $299 annual fee.
Variable rate borrowers selecting the package will also have access to an offset account – a feature that's not available on ING fixed rate home loans.
For investors, the new lowest home loan rate in ING's stable is 5.04% p.a. (5.47% p.a.), available to those with LVRs of 70% or less fixing their rate for two years.
The latest cuts apply to one- and two-year terms, while longer fixed options up to five years remain unchanged.
ING slashes fixed rates for owner-occupiers
Here's the new fixed rates on the table for eligible owner-occupiers turning to ING:
| Product | Fixed period | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|---|
| Orange Advantage Residential | One year | 80% | -20bp | 5.14% | 5.39% |
| 80-90% | -20bp | 5.24% | 5.58% | ||
| 90-95% | -20bp | 5.34% | 5.91% | ||
| Two years | 80% | -30bp | 4.89% | 5.32% | |
| 80-90% | -30bp | 4.99% | 5.50% | ||
| 90-95% | -30bp | 5.09% | 5.80% |
For comparison, ING's lowest variable rate was cut to 5.39% p.a. (5.42% p.a.) in August and is available to owner-occupiers with LVRs of 80% or less.
ING cuts fixed rates for investors
ING one- and two- year fixed rates for investors with LVRs up to 80% are now advertised as follows:
| Rate type | Fixed period | Change | New rate | Comp rate* |
|---|---|---|---|---|
| P&I | One year | -20bp | 5.29% | 5.54% |
| IO | -20bp | 5.44% | 5.56% | |
| P&I | Two years | -30bp | 5.04% | 5.47% |
| IO | -30bp | 5.19% | 5.50% |
Comparatively, ING's lowest advertised variable rates for property investors is 5.54% p.a. (5.57% p.a. comparison rate*), offered to those with LVRs of 80% or less.
How do ING's new fixed rates stack up?
While ING's rates are among the most competitive from major lenders, smaller players like BCU Bank and P&N Bank currently advertise sharper one-year fixed rates at 4.65% p.a. (5.43% and 5.48% respective comparison rates*).
Among larger lenders, Suncorp Bank appears to reign, advertising a 4.79% p.a. two-year fixed rate (5.74% p.a. comparison rate*) for eligible owner-occupiers.
ING's two-year fixed rate is now equal to the headline rates on offer from Westpac and its subsidiaries Bank of Melbourne, BankSA, and St George - the lowest advertised rate among the big four banks.
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Image made on Canva using assets by R/DV/RS on Wikimedia Commons
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