The non-major lender has dropped its owner-occupied home loan rates by up to 17 basis points.
ING is the latest lenders to drop its home loan rates, announcing cuts of up to 17 basis points across its Orange Advantage and Mortgage Simplifier principal and interest variable home loans, effective from 30 May.
The non-major’s rates now start from 3.59 per cent (3.62 per cent comparison rate) for its Mortgage Simplifier product and 3.64 per cent (3.96 per cent comparison rate) for its Orange Advantage loan.
ING’s latest rate changes follow cuts of up to 15 basis points across the same home loan products in March, which came less than two months after its decision to increase rates for all of its customers by 15 basis points.
According to rate comparison site Canstar’s finance analyst, Steve Mickenbecker, ING’s latest move could be part of a plan to capitalise on the shift in sentiment across the market.
“The market is showing promising early signs of recovery – too early for a trend yet – and no lender wants to miss out on its share of the quality loans in market,” he said.
“ING is freshening up its variable rates for new loans to keep it competitively positioned in the market.”
RateCity research director Sally Tindall added that ING’s changes have preempted an expected monetary policy adjustment from the Reserve Bank of Australia (RBA).
“With a rate cut very much on the cards, some lenders are getting ahead of the game to try to bring in new business,” she said.
In an address to the Economic Society of Australia last week, RBA governor Philip Lowe conceded that the central bank’s board would “consider the case” for a cut to the official cash rate in June.
The RBA board will meet to determine the June cash rate on Tuesday, 4 June.
[Related: ING reprices home loan offerings]