Here's how ING has responded to the RBA's cash rate hike

ING has passed on the latest cash rate rise in full, meaning it will be raising interest rates on its variable home loans by 50 basis points – here’s what it has announced, and what it could mean for home loan customers.

The Reserve Bank of Australia (RBA) raised the cash rate by 50 basis points to 0.85% at its June meeting. This the biggest cash rate rise in 22 years and the first back-to-back rate rise in over 12 years.

Typically, when the RBA announces a rise in the cash rate, banks and other home loan lenders pass this on to customers in the form of interest rate rises. Canstar is keeping track of which banks and lenders announce rate hikes, with ING now among those to have done so. The big four banks – Commonwealth Bank, Westpac, NAB and ANZ – have also all passed on the rate rise in full.

Readers, take note that home loan rate changes are often expressed in terms of ‘basis points’ – if you’d like to know more, you can read our explainer to find out about how basis points work.

ING home loan interest rate increase

ING today announced it would hike the variable interest rates on its owner-occupier and investor variable home loan rates for new and existing customers by 50 basis points from 15 June 2022. We’ve crunched the numbers to find out how this could affect customers’ repayments.

The table below shows ING’s current lowest variable home loan interest rate, along with the increase announced today and when this increase will come into effect. It also shows what this could mean for your monthly home loan repayments, and how repayments have changed since April, before the RBA’s initial cash rate hike.

Note that these calculations are based on a hypothetical home loan of $500,000 with an 80% LVR. Our calculations are based on the presumption of a 30-year home loan, with monthly principal and interest repayments, using the lowest advertised variable rate from the lender in question.

ING savings increases

ING will also increase the variable rate on its popular Savings Maximiser savings account by 75 basis points, taking the total rate to 2.10% including a 2.05% bonus rate. Customers can currently earn the bonus savings rate by depositing $1,000 from an external source to a personal ING account in their name, making at least five card purchases with their linked Orange Everyday bank account card and growing their Savings Maximiser balance each month.

At 2.10%, the Savings Maximiser will have the highest interest rate on Canstar’s database (based on savings account rates at the time of writing and excluding accounts with age restrictions). Savers with $10,000 in their account who meet the bonus criteria stand to earn an additional $6.25 a month in interest, or a total of $17.50 per month.

There will also be rate increases across ING’s Savings Accelerator. The rates for balances of $50,000 or more will increase by 55 basis points, while rates for balances under $50,000 will increase by 30 basis points. This will take the total rate to 0.35% for balances under $50,000, 0.90% for balances between $50,000 and $149,999.99, and 1.20% for balances $150,000 and over. These changes will come into effect on 15 June 2022, along with the Savings Maximiser rate increase.

ING will also increase some of its term deposit rates, including raising its 12-month term deposit to 2.75%. The new term deposit rates will be effective from 10 June 2022.

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