Finance debt

ING reduces variable rates and increases fixed options

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

Online banking’s Orange Advantage loan has suffered cuts 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 pa of 2.04% (comparison rate of 2.40% pa *).

Similar sized reductions were leveled against ING’s mortgage simplification option. Currently, homeowners who take out a loan between $ 500,000 and $ 999,000 (LVR ≤80%) can access rates as low as 1.99% pa (comparison rate 2.02% pa *).

ING has also raised a number of fixed rates, some up to 50 basis points, reflecting a renewed belief that the RBA will be forced to tighten monetary policy in the coming years.

RELATED: ANZ Joins Other Big Banks to Cut Variable Rates on Home Loans

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

At the time of writing, the average floating rate among the lenders we track is 3.10% p.a., well above the 2-year average fixed rate of 2.29% p.a and slightly higher. at the average rate over 4 years of 2.75% per year.

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 of 2.02% pa *)
  • No service or request fees
  • Free additional refunds and possibility of withdrawal

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ING Mortgage Simplifier allows borrowers to access rates as low as 1.99% pa (comparison rate 2.02% pa *), however the rate you receive will depend on your LVR and the size of the loan. ready. 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 collect those extra funds along the way.

Borrowers are also sure to appreciate ING’s daily catch-up feature. This automatically rounds purchases made on your Orange Everyday transaction account to the nearest $ 1 or $ 5 and assigns 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 of 2.40% pa *)
  • 100% clearing account
  • Free additional refunds and possibility of withdrawal

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The Orange Advantage plan doesn’t leave much on the table, combining variable rates as low as 2.04% p.a. (2.40% p.a. compare rate *) with a number of handy features to help you out. to save on interest. You’ll be able to make additional free refunds, access a withdrawal feature, and use a clearing account to reduce the balance on which interest is charged. The daily catch-up feature can also channel any spare change you have available to pay off your loan.

You can also receive $ 3,000 in cash back when refinancing a loan of at least $ 500,000 (80% LVR) with another lender, provided you apply by December 31, 2021, to pay before March 31, 2022 and open an Orange Everyday account within 70 days. However, you will need to plan for a few fees, including a settlement fee of $ 299, an annual service fee of $ 299, and a discharge fee of $ 250.

Fixed rate loan with Orange Avantage
  • 1-year fixed rate of 2.04% pa (comparison rate of 3.94% pa *)
  • Additional refunds allowed up to $ 10,000 per year
  • $ 3,000 cash back offer (conditions apply)

Find out more

Do you rather like the idea of ​​locking in a fixed rate? ING’s fixed rate loan (with Orange Advantage) allows you to do just that with terms of 1 to 5 years available and fixed rates as low as 2.04% per annum (comparison rate of 3.94% per year *) over a period of one year for owner-occupants with an LVR of 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-off ($ 299) and discharge ($ 250) settlement fees to consider, and borrowers will want to pay attention to the rate of return (4.10% per annum) so as they approach the end of their fixed rate period. . Last but not least, ING is currently offering $ 3,000 in cashback 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).

* CAUTION: This comparison rate only applies to the example (s) given. Different amounts and terms will result in different comparison rates. Costs such as redemption or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but can influence the cost of the loan. The comparison rate displayed is that of a guaranteed loan with monthly repayment of principal and interest of $ 150,000 over 25 years.

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

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