Online bank ING has announced that it will raise interest rates on a number of its fixed and variable home loans by 10 to 30 basis points from tomorrow (February 3).
The changes will result in increased variable interest rates on the bank’s Orange Advantage loan and increased fixed rates on its Fixed Rate Loan and Fixed Rate Loan (with Orange Advantage) products.
As a result, the new lowest rates available on each loan will be:
|To lend||Interest rate|
|Orange Advantage||2.14% pa variable rate (2.50% pa comparison rate*) for owner-occupiers (|
|Fixed rate loan||Fixed rate of 2.44% per annum (comparative rate of 3.97% per annum*) over a term of 1 year for homeowners (|
|Fixed rate loan (with Orange Advantage)||2.34% pa fixed rate (3.96% pa comparison rate*) over 1 year for owner-occupiers (|
Since November, 78 different lenders tracked in the Mozo database have raised more than 2,500 fixed mortgage rates, so ING’s decision to raise a number of its own fixed rates comes as no surprise.
What’s interesting is the bank’s decision to raise rates on its Orange Advantage variable loan, as most lenders have moved variable rates the other way in recent months. In fact, ING cut rates on this loan by up to 25 basis points as recently as November.
However, the rates for ING’s other variable rate loan – the Mortgage Simplifier – will remain unchanged.
Homeowners with an LVR below 80% can currently access rates as low as 1.99% per annum (comparator rate of 2.02% per annum*) with the Mortgage Simplifier, which is among the lowest variable rates lowest available from tracked lenders in the Mozo database.
RELATED: February Home Lending Snapshot: Athena and ANZ Lead Variable Rate Drop
Want to see how ING’s rates compare to other offers? Head over to the Mozo home loan comparison chart to browse hundreds of loans available from Australian lenders, or get started right away by checking out some of the great deals in the chart below.
* 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 shown is for a secured 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 your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.
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