ING cuts variable rates and increases fixed options


ING has today made a number of changes to its range of home loans, reducing variable rates by up to 25 basis points while increasing fixed rates on 2, 3, 4 and 5 year terms.

The online banking Orange Advantage loan saw reductions ranging from 15 to 25 basis points on various LVR levels. Homeowners borrowing between $500,000 and $999,000 (LVR ≤ 80%) can now take advantage of a variable rate of 2.04% pa (2.40% pa comparison rate*).

Similar sized discounts were applied to ING’s Mortgage Simplifier option. Currently, homeowners taking out a loan between $500,000 and $999,000 (LVR ≤ 80%) can access rates as low as 1.99% per annum (comparison rate of 2.02% per annum*) .

ING also raised a number of fixed rates, some as much as 50 basis points, reflecting a renewed belief that the RBA will be forced to tighten monetary policy over the next few years.

RELATED: ANZ joins other major banks in cutting variable rates on home loans

Although there are still many fixed rates in the market below the 3% mark, lenders are likely trying to steer customers away from these still attractive options and towards their variable rate loans.

As of this writing, the average floating rate among the lenders we track is at 3.10% per annum – well above the average 2-year fixed rate of 2.29% per annum and slightly above the average rate over 4 years of 2.75% per annum.

We’ve included a quick overview of the various ING fixed and variable products below, but for an in-depth look at what’s currently available on the market, visit our home loan comparison page.

Mortgage Simplifier
  • Variable rates from 1.99% pa (comparison rate 2.02% pa*)
  • No service or file fees
  • Free additional redemptions and ease of withdrawal

ING’s Mortgage Simplifier gives borrowers access to rates as low as 1.99% per annum (comparator rate 2.02% per annum*), but the rate you receive will depend on your LVR and the size of the loan. You will be able to borrow between $50,000 and $2 million, split your loan and make additional repayments without having to pay for the lien. A withdrawal feature is also available in case you want to grab those extra funds on the trail.

Borrowers will also appreciate ING’s daily rounding feature. This automatically rounds up purchases made on your Orange Everyday transaction account to the nearest $1 or $5 and allocates the difference to your mortgage. Just keep in mind that there are a few fees that come with this loan, such as the $299 settlement fee and the $250 discharge fee.

Orange Advantage (Package)
  • Variable rates from 2.04% pa (comparison rate 2.40% pa*)
  • 100% clearing account
  • Free additional redemptions and ease of withdrawal

The Orange Advantage package leaves very little room at the table, combining variable rates as low as 2.04% per annum (comparator rate 2.40% per annum*) with a number of convenient features to help you save on interest. You will be able to make additional free repayments, access a withdrawal feature, and use a clearing account to reduce the balance on which interest is charged. The daily rounding feature can also channel any reserve currency you have to pay off your loan.

You can also receive $3,000 cashback when refinancing a loan of at least $500,000 (80% LVR) with another lender, as long as you apply by December 31, 2021, that you pay before March 31, 2022 and open an Orange Everyday account within 70 days. There are a few fees you’ll need to budget for, however, including the $299 settlement fee, $299 annual service fee, and $250 release fee.

Fixed rate loan with Orange Advantage
  • 1-year fixed rate of 2.04% pa (comparative rate 3.94% pa*)
  • Additional repayments allowed up to $10,000 per year
  • $3,000 cashback offer (conditions apply)

Learn more

Like the idea of ​​locking in a fixed rate instead? ING’s Fixed Rate Loan (with Orange Advantage) lets you do just that with tenors of 1 to 5 years available and fixed rates as low as 2.04% per annum (compare rate 3.94% per year*) over a period of 1 year for owner-occupiers with an LVR less than 80%. ING also allows borrowers to make up to $10,000 in additional repayments each year during the set period.

In terms of other costs, there are one-time settlement ($299) and discharge ($250) fees to consider, and borrowers will want to pay attention to the rate of return (4.10% per annum) at approaching the end of their fixed rate period. . Finally, ING is currently offering a rebate of $3,000 to eligible refinancers who wish to transfer an existing loan of $500,000 (max. 80% LVR) or more to ING. Applications must be received by December 31, 2021 and paid by March 31, 2022 (terms and conditions apply).

* ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed corresponds to a guaranteed loan with monthly principal and interest repayments of $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on the amount of your loan, the term of the loan and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

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