The non-major bank has cut its fixed rates on investment loans by up to 36 basis points while lifting its fixed rates for owner-occupied home loans.
ING Australia is among a long line of lenders — including Bankwest, HSBC and Virgin Money — to change its interest rates on investor loans, after the Australian Prudential Regulation Authority conditionally lifted its 10 per cent cap on investor loan growth, which resulted in a $16.6 billion decline in investor loan approvals in the 2017–18 financial year.
Now in effect, the one-year fixed rate for principal and interest (P&I) and interest-only (IO) investor loans has been dropped to 4.29 per cent p.a. (with a comparison rate of 5.69 per cent p.a.), two-year and three-year to 4.19 per cent (with comparison rates of 5.53 per cent and 5.40 per cent p.a., respectively), and five-year to 4.69 per cent (with a comparison rate of 5.37 per cent).
Meanwhile, ING’s one-year and two-year fixed rates for P&I owner-occupied loans with Orange Advantage has increased to 3.75 per cent p.a. (with comparison rates of 4.72 per cent p.a. and 4.63 per cent p.a, respectively), four-year to 4.09 per cent p.a. (with a comparison rate of 4.58 per cent), and five-year to 4.09 per cent (with a comparison rate of 4.53 per cent).
Following the lead of other lenders that have recently increased their rates out of cycle, the non-major bank’s one-year and two-year fixed rates for other P&I owner-occupied loans have been lifted to 3.85 per cent p.a. (with comparison rates of 4.73 per cent p.a. and 4.65 per cent, respectively), while four-year and five-year fixed rates have been increased to 4.19 per cent p.a. (with a comparison rate of 4.62 per cent p.a. and 4.57 per cent p.a., respectively).
ING in September had also raised its variable interest rates for investor loans by 15 basis points, which apply to new and existing customers paying P&I and IO. This was two months after lifting its variable rates for owner-occupied loans.
The non-major bank also announced that Gadens Victoria, as of 2 November, is no longer acting as solicitors for ING in relation to residential property purchases, refinances and discharges, due to a structural range to the law firm’s overall business.
Mortgage documents for settlements in Victoria will now be prepared by Gadens in Queensland.
ING said that the change “should have minimal impact on loan documentation and settlement times”.
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