ING drops mortgage rates

Reporter 05:40 AM, 23 Dec 2019 1 minute read

The non-major has reduced fixed rates by up to 65 bps across its owner-occupied and investor home loans.

ING has announced fixed rate reductions for both owner-occupiers and investors, effective for new and existing customers from Friday, 20 December.

For owner-occupiers:

Standard P&I fixed rates have been cut by up to 45 bps and now start from 2.94 per cent (three-year fixed rate) – 4.01 per cent comparison rate
Orange Advantage P&I fixed rates have been cut by up to 45 bps and now start from 2.84 per cent (three-year fixed rate) – 3.98 per cent comparison rate

For investors:

Standard P&I fixed rates have been cut by up to 60 bps and now start from 3.09 per cent (three-year fixed rate) – 4.53 per cent comparison rate
Standard interest-only fixed rates have been cut by up to 65 bps and now start from 3.29 per cent (three-year fixed rate) – 4.98 per cent comparison rate

ING is the latest lender to drop its fixed rates, with Teachers Mutual Bank announcing reductions of up to 102 bps earlier this month.

An additional cut to the cash rate will likely place further downward pressure on interest rates.

The Reserve Bank of Australia (RBA) is expected to lower the cash rate for the fourth time in February when its monetary policy board next meets.

Shane Oliver, chief economist at AMP Capital, is expecting back-to-back cuts in February and March, which would take the cash rate to 0.25 per cent.

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According to Mr Oliver, the RBA would then consider quantitative easing in the absence of fiscal policy stimulus in the federal government’s budget in May.

[Related: TMB announces fixed rate changes]