From today, a number of ING investor and owner-occupier home loans with a variable rate will be lowered for new customers only, while some interest-only variable rates will go up for new owner-occupier customers.
A small number of fixed rates for new investors will also fall by 0.10 percentage points, including the 3-year fixed rate which will decrease to 4.09% (*comparison rate 5.48%).
Rate cuts ranging from 0.20 percentage points to 0.40 percentage points will apply to new investor home loans across ING’s Orange Advantage principal and interest (P&I) and interest-only (IO) products and the Mortgage Simplifier P&I and IO loans.
A smaller rate cut of 0.08 percentage points will apply to the Orange Advantage and Mortgage Simplifier owner-occupier P&I loans, while the IO owner-occupier versions of those products will see rates go up by 0.11 percentage points.
The rate changes for Orange Advantage products with a loan amount ranging from $150,000 to $499,000 and 80% LVR includes:
- Owner-occupier P&I falling from 3.93% (*comparison rate 4.25%) to 3.85% (comparison rate 4.17%)
- Owner-occupier IO rising from 4.33% (comparison rate 4.64%) to 4.44% (comparison rate 4.75%)
- Investor P&I falling from 4.39% (comparison rate 4.70%) to 4.09% (comparison rate 4.41%)
- Investor IO falling from 4.69% (comparison rate 5.00%) to 4.49% (comparison rate 4.80%)
In February, ING increased a number of its variable rates for new and existing customers by 0.15 percentage points.
Other lenders, including the big four banks, have made rate hikes out of step with the steady RBA cash rate since mid-last year, with many citing rising wholesale funding costs for the need to increase the costs of borrowers’ home loans.