Powered by MOMENTUM MEDIA
subscribe to our newsletter

Bank lifts home loan rates

A non-major lender has announced variable home loan rate increases of up to 15 basis points for new and existing mortgage rates. 

ING Australia has announced that, effective from Thursday, 7 February, it will increase its variable mortgage rates for all home loan customers by up to 15 basis points. 

The bank’s revised variable home loan rate now starts from 3.93 per cent. 

ING’s latest rate rise follows a 10 basis point increase in July 2018, in line with rate moves from several other lenders in response to rising wholesale funding costs

Reacting to the news, Sally Tindall, research director at RateCity.com.au, said: “Today’s announcement will come as a surprise to some ING customers who weren’t expecting a second out-of-cycle rate hike. 

Advertisement
Advertisement

“The cost of funding pressures are real and here to stay, and we expect more lenders to follow in a second round of hikes.”

Since the turn of the year, several lenders have lifted rates out-of-cycle, including NAB and its subsidiary UBank, the Bank of Queensland (BOQ) and Virgin Money.

NAB announced increases of up to 16 basis points on its variable home loan offerings, with its subsidiary UBank also announcing increases earlier this year, lifting its fixed home loan rates by up to basis points.

The Bank of Queensland and Virgin Money have also repriced their mortgages, increasing rates earlier this month by 18 basis points and 20 basis points, respectively.  

Throughout 2018, several lenders, including ANZ, the Commonwealth Bank of Australia, and Westpac, also increased rates out-of-cycle.

PROMOTED CONTENT


However, despite the second wave of out-of-cycle rate hikes, some lenders, including Heritage Bank, Adelaide Bank, and Teachers Mutual Bank, have reduced their home loan rates by as much as 32 basis points. 

 [Related: NAB succumbs to cost pressures and hikes rates]

Bank lifts home loan rates
ING
mortgagebusiness

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The September quarter last year recorded the highest level of profitability from home sales in more than a decade, but researchers have warn...

The pandemic has changed what buyers look for in housing, according to new research.   ...

A new partnership exploring how the build-to-rent-to-buy (BtRtB) model could help at-risk and vulnerable women become home owners is under...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.