ING to raise mortgage interest rate for homeowners, but lower investor rates

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ING will introduce changes in mortgage interest rates this Thursday. Some homeowners with low deposits might feel the effects, but investors who return to the real estate market might benefit from lower rates.








ING is preparing to modify certain mortgage rates. Image source: nitpicker / Shutterstock.com.




ING will change some of its mortgage interest rates for new clients only, as of Thursday, February 4.




The only change for homeowners (owner-occupiers) will be a 0.11 percentage point increase in variable rate loans of at least $ 150,000 with a loan-to-value ratio (LVR) of over 90%. This LVR equals a low deposit of less than 10% of the property’s value.




Canstar financial expert Steve Mickenbecker said the move was not surprising given that banks increasingly base interest rate pricing on risk, which means they are looking for borrowers. “Quality” – people whom they consider unlikely to fall behind in their repayments.




Lenders are aggressively looking for market share right now, but they want borrowers who are in the quality segment of the market, ”Mickenbecker said.




ING joins Adelaide Bank, Credit Union SA, Freedom Lend, Homestar Finance, Newcastle Permanent, People’s Choice Credit Union and QBank in raising owner-occupied rates for principal and interest repayments so far this year, according to the Base data from Canstar.




Investors looking to refinance or take out a new loan with ING, on the other hand, will find lower rates than before, with cuts of between 0.05 and 0.80 percentage points in a range of variable and fixed rates. .




Mr Mickenbecker said if banks are serious about increasing their loan portfolios, it makes sense to target not only homeowners, but also investors who are returning to the market after the COVID-19 crisis.








“Investors have been slower to enter the market during this phase of economic recovery, but over the past two months there have been indications that they are returning,” Mickenbecker said.




“Inevitably some investors will look at prices now and say ‘we don’t think prices are going to come down much more now and we have more confidence in price maintenance so now is the time to enter the market’.




“So it makes sense to try to involve these investors and come into your organization as a lender.”




What are the new rates for ING home loans?




In summary, the following changes will take place for new ING home loan customers on Thursday, February 4, but existing customer rates will not be affected:




Owner-occupant rate changes




  • Increase of 0.11 percentage point, from 2.94% to 3.05% (comparison rate 3.39%): Orange Advantage variable loan for an LVR> 90% with compensatory account and reimbursement of principal and interest.
  • Increase of 0.11 percentage point, from 2.89% to 3.00% (comparison rate 3.03%): Simplify variable mortgage loan for an LVR> 90% and principal and interest repayments.




Rate changes for investors




  • Reduction of 0.05 percentage point on Orange Advantage and Mortgage Simplifier variable loans for loans over $ 150,000, for all types of repayment of principal, interest and interest only.
  • Decrease of 0.15 and 0.80 percentage points on all fixed rate mortgages (terms of one, two, three, four and five years) with repayment of principal and interest and interest only.




These changes mean that ING’s lowest variable rate for investors will be 2.64% (comparison rate 2.67%) for loans of at least $ 150,000 repaid in principal and interest.




The lowest ING fixed rate for investors will be 2.34% for one, two and three year fixed loans with repayment of principal and interest (comparison rate of 4.56%, 4.35% and 4.16%, respectively).




Some of the Best Home Loan Rates Based on Canstar Database




To see how ING’s rate changes stack up, it may be helpful to look at what the highest interest rates are for other homeowner variable rate loans, as well as for investment loans. .




Top 5 lowest homeowner variable mortgage rates




Lender To lend Authorized LVRs Rate Comparison rate
Reduce home loans Variable cutting rate Up to 60% 1.77% 1.83%
Homestar Finance Star Gold mortgage Up to 60% 1.79% 1.84%
Pacific Mortgage Group Variable P&I Up to 60% 1.89% 1.89%
Northern Interior Credit Union Dream Value Owner Occupied PI Up to 60% 1.89% 2.28%
Freedom loan Variable freedom PI 70% Up to 70% 1.97% 1.97%




Source: www.canstar.com.au – 02/03/2021. Based on Homeowner Variable Home Loans on Canstar database available for loan amount of $ 400,000 plus principal and interest repayments. Excludes loans reserved for first-time buyers. Comparison rates calculated on the basis of a loan amount of $ 150,000 over a total loan term of 25 years. One product per supplier is listed. Top 5 selected and table sorted in ascending order by rate, followed by comparison rate. LVR (loan to value ratio) refers to the mortgage amount as a percentage of the property’s value.




Top 5 lowest investment mortgage rates




Lender To lend Authorized LVRs Rate Comparison rate
Northern Interior Credit Union Dream Value Investor PI Up to 60% 1.89% 2.28%
loans.com.au Smart Booster Investor Bundle intro 1 year * Up to 80% 1.99% 2.71%
LCU 3-year fixed launch investment real estate loan Up to 80% 1.99% 3.12%
UBank Inv UHomeLoan Fixed 3 years P&I Up to 80% 2.09% 2.60%
RACQ Bank Investment choice Fixed 3 years 20k + Up to 90% 2.09% 4.21%




Source: www.canstar.com.au – 02/03/2021. Based on Canstar database investment real estate loans available for loan amount of $ 400,000 and principal and interest repayments. Excludes loans reserved for first-time buyers. Comparison rates calculated on the basis of a loan amount of $ 150,000 over a total loan term of 25 years. One product per supplier is listed. Top 5 selected and table sorted in ascending order by rate, followed by comparison rate. * The Smart Booster Investor Bundle from Loans.com.au is available to clients who also have an owner occupied loan with Loans.com.au.











































































































































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