One of Australia’s banks has said it will cut 35 basis points from its one and two year fixed rates.
Effective from tomorrow, ING DIRECT will cut its one year fixed rate to just 6.89 per cent, while its two year fixed rate will sit at 6.99 per cent p.a.
The lender’s announcement comes just days after ING DIRECT decided it would trim its three year fixed rate.
“With the current level of uncertainty on interest rates, there seems to be a customer appetite for sharply-priced short tenure fixed rates,” the bank’s head of mortgage products Ray Esho said.
“What’s more, our fixed rates revert to the very competitive Mortgage Simplifier loan on expiry if the customer doesn’t wish to re-fix, so this offers great value for our customers.
“Whilst there’s currently a lot of activity in the Australian mortgage market, our recent initiatives seem to be driving competition and that is very much our intention at ING DIRECT.”