ING entices new customers with fixed rate cut

ING has cut its fixed rates for new customers in a move one money expert said demonstrates the bank’s appetite to lock in customers.

The bank’s shorter-term fixed rates of one and two years have been slashed by 0.2%, while longer-term fixed rates of three, four, and five years have been reduced by 0.25%, equivalent to a typical Reserve Bank cash rate move. 

Below is a summary of ING rate changes: 

_{Note: For owner-occupied – Orange Advantage Residential LVR ≤ 80%}

Glenn Gibson (pictured above), head of sales and distribution at ING, said the bank’s fixed loan applications are “strong and have been increasing each month since November 2022.”

“We want to offer competitive rates to assist customers who want a bit more certainty in these uncertain times,” Gibson said. 

Canstar research showed the bank now holds the lowest four- and five-year fixed rates on the comparison website’s database.  

“Cutting fixed rates and making them more appealing is a way for lenders to lock in new customers and shore up their portfolio,” said Effie Zahos, Canstar’s editor-at-large and money expert.

“These fixed rate offerings are also timely for borrowers rolling off a fixed-rate period who may be seeking the security of locking in their rate again rather than worrying about how they will cope with potential rate increases. Locking in can give borrowers peace of mind as they have the certainty of knowing what their repayments will be each month for the fixed-rate term.”

Zahos warned though that although the fixed rates may look very appealing as they are a fair bit lower than the average variable rate of 6.14%, they may not be as great a rate in 12 months’ time, with banks forecasting the Reserve Bank to start cutting the cash rate as soon as this year.

Below are the lowest home loan rates on the Canstar database:

_{Source: Based on $150,000 loan owner-occupier loans repaid over 25 years}

Have a thought about this story? Include it in the comments below.