ING and others continue the shortage in fixed-rate mortgages

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ING raised rates on a number of fixed-rate loans on Friday, and a number of other lenders did the same earlier this week.

These increases come a day after the NAB increases fixed home loan interest rates.

An ING home loan was increased by 50 basis points – 0.50%, or one-half percentage point – and that amount went to the five-year term loan with principal and interest (P&I).

It is now 3.59% pa (4.31% pa comparable rate *).

A number of other two to five year home loan interest rates have also been increased.

Some notable changes for owner-occupiers were:

  • Living fixed 2 years 80%: Increase by 30 basis points to 2.59% pa (3.86% pa comparison rate *)
  • Living fixed 3 years 80%: Increase by 30 basis points to 2.99% pa (3.84% pa comparison rate *)
  • Living fixed 4 years 80%: Increase of 40 basis points to 3.29% pa (3.85% pa comparison rate *)
  • Fixed living 5 years 80%: Increase by 40 basis points to 3.49% pa (3.88% pa comparison rate *)

In September 2020, the four-year rate was 2.09% pa (3.46% pa comparable rate *).

A difference of 120 basis points on a 30-year home loan of $ 400,000 equals $ 253 per month in additional interest paid.

And for investors:

  • Fixed investment 2 years: Increase by 20 basis points to 2.69% pa (4.42% pa comparison rate *)
  • Fixed investment 3 years: Increase by 40 basis points to 3.09% pa (4.35% pa comparison rate *)
  • Fixed investment 4 years: Increase by 40 basis points to 3.39% pa (4.33% pa ​​comparison rate *)

A notable feature of the recent wave of rate hikes is that one-year fixed-rate home loans have often been left untouched or even reduced.

BCU increases

The Coffs Coast credit union raised the rates on fixed-rate home loans, albeit at a slower pace.

Some notable changes were:

  • P&I for private households 3 years: Increase by 10 basis points to 2.39% pa (3.63% pa ​​comparison rate *)
  • Wohn-Fest P&I 5 years: Increase by 15 basis points to 2.99% pa (3.63% pa ​​comparison rate *)

Various home loans were also increased in similar steps.

IMB changes

While the IMB raised the rates on a few fixed rate home loans, it also lowered the rates on adjustable rate loans.

The variable home loans “Budget” and “Essentials” for owner-occupiers were reduced by 4 to 5 basis points.

In the meantime, some increases were included:

  • Investment Fixed P&I 3 years: Increase by 19 basis points to 2.54% pa (3.37% pa comparison rate *)
  • Investment Fixed P&I 5 years: Increase by 19 basis points to 3.18% pa (3.49% pa comparison rate *)

These home loans have a maximum LVR of 90%

86 400 cuts

86,400 this week focused solely on rate cuts, namely floating rate home loans.

Home loans were lowered by 15 to 25 basis points and there were a few changes:

  • Home loan P&I 80%: Reduction of 20 basis points to 2.59% pa (2.87% pa comparison rate *)
  • Ordinary home loan P&I 80%: Reduction of 25 basis points to 2.34% pa (2.35% pa comparison rate *)

The main difference between the “Own” and “Neat” products is that home equity loans come with a compensation account.


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Lender

Tariff type Offset Draw again Ongoing fee Upfront fees LVR Lump sum repayment Additional repayments Pre-approval

variable More details
LIMITED TIME OFFER

Smart Booster Home Loan With Variable Discount – 2 Years (LVR.)
  • Fast processing times, can take 30 days to complete
  • For purchase and refinancing at least 20% down payment
  • No ongoing or monthly fees, add 0.10% offset

variable More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Interest Home Loans – Prime (Principle and Interest) (Owner Occupied) (LVR
  • No upfront or ongoing fees
  • 100% full offset account
  • Additional refunds + redraw services

Fixed More details
RATE LOCK FOR 90 DAYS

Fixed home loan 1 year (principle and interest) (LVR
  • Simple, digital application process
  • Market leading app that allows you to pay off your loan faster
  • No ongoing fees

variable More details
REFINANCING IN MINUTES, NOT WEEKS

Nano Home Equity Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No nano fees. Free 100% offset sub-account
  • Mobile app, Visa debit card and instant payments


Photo by Laure Noverraz on Unsplash

When selecting the above products, the entire market was not considered. Rather, a stripped-down part of the market was considered. Some vendors’ products may not be available in all states. In order to be considered, the product and price must be clearly published on the product provider’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group is associated with the Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest and how we are paid, please click through the website links.


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