Borrow
How will lenders raising rates affect you?
A lender has lifted its rates by up to 40 basis points across both its owner-occupied and investment home loans, despite record-low rates from the RBA and cuts from its competition.
How will lenders raising rates affect you?
A lender has lifted its rates by up to 40 basis points across both its owner-occupied and investment home loans, despite record-low rates from the RBA and cuts from its competition.
ING has hiked fixed mortgage rates by up to 20 bps for owner-occupiers and by up to 40 bps for investors, effective for new applications submitted from 19 June.
Owner-occupied fixed rates now start from 2.19 per cent (3.79 per cent comparison rate), while investor rates start from 2.94 per cent (4.46 per cent comparison rate).
ING’s rate hikes come amid interest rate reductions from several of its competitors, including the big four banks, which have reduced their rates in a bid to attract new customers.
Last week, the National Australia Bank reduced its fixed home loan rates by up to 15 bps, weeks out from the opening of the second phase of the First Home Loan Deposit Scheme.
Canstar’s money expert Steve Mickenbecker believes consumers should look into their personal home loan as banks offer record-low rates to attract new customers.
“Current low rates make it a great time for borrowers to ease the family budget with lower repayments. For those coming out of COVID-19 in good financial shape, lenders are competing hard for their business,” he said.
“The rate is a massive 1.28 per cent below the average variable rate and could see borrowers save $272 per month on the average $400,000 loan over 30 years.
However, ING is not the only lender to lift fixed rates amid reductions, with Newcastle Permanent, Teachers Mutual Bank Ltd (TMBL) and ANZ also lifted rates in recent weeks.
Both ANZ and TMBL’s changes followed spikes in the banks’ home lending volumes, with TMBL reporting a 300 per cent increase in monthly applications.
Meanwhile, heightened competition for high-quality owner-occupied borrowers continues to trigger reductions in variable mortgage rates, particularly off the back the RBA reducing the official cash rate from 1.5 per cent to 0.25 per cent in just 12 months.
According to the Australian Prudential Regulation Authority’s latest property exposure statistics, mortgage rates have dropped from a weighted average of 4.2 per cent in the March quarter of 2019 to a weighted average of 3.1 per cent.
Did you enjoy this article? You may also be interested in:
RELATED ARTICLES
About the author
About the author
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
