ING moves on fixed home loan rates
One of Australia’s largest home loan lenders, ING, has announced that it will be making a number of changes to its fixed rate home loans, including the introduction of tiered pricing for different loan-to-value ratios (LVRs).
Coming into effect tomorrow (May 26), the changes will affect new owner occupier customers on the bank’s Fixed Rate Loan and Fixed Rate Loan (with Orange Advantage) home loan products.
These include cuts of between 15-35 basis points on shorter fixed rate terms (1-3 years) and increases of between 20-35bp on longer fixed rate terms (4-5 years).
As a result, the lowest fixed rates available to owner occupiers with the ING Fixed Rate Loan (with Orange Advantage) will be:
- 1-year: 2.04% (3.94% comparison rate*)
- 2-year: 1.84% (3.73% comparison rate*)
- 3-year: 1.89% (3.56% comparison rate*)
- 4-year: 2.34% (3.54% comparison rate*)
- 5-year: 2.49% (3.48% comparison rate*)
ING will also be rolling out a new tiered pricing system tomorrow for borrowers with varying loan-to-value ratios (LVRs) .
The new system, which will only apply to new borrowers, will expand the existing number of tiers to include specific rates for LVRs below 80%, between 80%-90% and above 90%.
How do ING’s new rates stack up?
There’s been a fair bit of action in the fixed rate home loan market of late, with plenty of lenders having already made the same moves as ING: sharpening shorter term rates and lifting longer ones.
So with all this movement, how will ING’s new fixed rates actually compare?
Well, ING’s new rates on the Fixed Rate Loan (with Orange Advantage) will be among the ten lowest in the Mozo database for 2-year and 3-year terms. And while not among the very lowest around, the 1-year, 4-year and 5-year fixed rates will also be quite competitive.
For comparison, here are the lowest fixed rates currently in the Mozo database as well as the average fixed rates, both of which are for owner occupiers^.
| Term | Rate leader | Fixed rate | Average |
| 1-year | bcu | 1.67% (3.84% comparison rate*) | 2.32% |
| 2-year | Homestar | 1.74% (2.23% comparison rate*) | 2.29% |
| 3-year | Credit Union SA | 1.79% (3.33% comparison rate*) | 2.31% |
| 4-year | BankVic | 1.95% (2.72% comparison rate*) | 2.48% |
| 5-year | UBank | 2.24% (2.33% comparison rate*) | 2.69% |
RELATED: ING crowned 2021 Mozo Experts Choice Home Lender Bank of the year
Interested in comparing even more mortgage offers? Head on over to the Mozo home loan comparison tables for the latest rates, fees and features from a range of lenders.
Or if it’s a fixed home loan rate you’re looking for then check out the hot offers below (including ING’s).
^Based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average home loan rates, check out our dedicated Australian home loan statistics page.