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Non-major bank ING Australia (ING) has announced it is lowering some of its variable rates, on the same day as the Reserve Bank of Australia (RBA) is widely expected to hike the official cash rate to 4.35 per cent.
Effective from today (5 May), the non-major lender will lower variable rates by up to 15 basis points across various loan-to-value ratio (LVR) tiers of its low-rate home loan, Mortgage Simplifier.
The changes apply to both principal-and-interest (P&I) and interest-only (IO) repayment types.
The most significant cuts of 0.15 per cent per annum are directed at borrowers with an LVR of 70 per cent or less for both owner-occupied and investor P&I segments.
Investors opting for interest-only repayments with an LVR between 80–90 per cent will also see a 0.15 per cent p.a. reduction.
Rate adjustment breakdown
The following table outlines the specific interest rate decreases for the Mortgage Simplifier product:
This would take its lowest available rate to 5.74 per cent.
The Mortgage Simplifier product is positioned as a low-cost variable option, featuring no ongoing monthly or annual fees and free redraw facilities.
Additional features noted for brokers include the ability for clients to make unlimited extra repayments and the “round up” tool, which funnels spare change from Orange Everyday card purchases directly into the loan balance.
The move comes as lenders continue to tweak pricing to remain competitive for new business amid broader economic pressures on households.
Speaking to Broker Daily, Sergio Delvescovo, ING’s national sales manager – broker, commented: “Delivering competitive products that offer strong value for Australians remains a key focus for ING. We’re pleased to announce that we’re reducing rates for new Mortgage Simplifier customers at a time where many Australian households are contending with cost-of-living increases.
“As a leading mortgage provider, we encourage all Australians to check the interest rates on their home loan and to get in touch with their broker if they’re wanting to find a better deal.”
[Related: What would the property market look like at a 4.85% cash rate?]
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