ING and ME slash variable rates on home loans as others rise

ING and ME Bank took an alternative route to Westpac and mutual banks this week, cutting variable rates by up to 15 basis points.

With the dust of another RBA cash rate hike well and truly settled, ING and ME Bank became the top lenders following the RBA’s decision to cut variable rates on home loans by up to 15 basis points .

The decision to cut variable rates on home loans comes as a wave of banks, including Westpac, have raised fixed rates on home loans over the past week.

Bank ME

For ME Bank, the variable rate cuts apply only to homeowners with principal and interest (P&I) loans for Basic Home Loan and Member Flex Package products.

Changes to ME Bank’s home loan portfolio for homeowners include:

• Basic mortgage Homeowner P&I : decrease of 15 basis points to 3.14% pa (comparative rate of 3.17% pa*)
• P&I Flexible Home Loan 50-60% Member Pack: Decrease of 5 basis points to 3.29% per year (comparative rate of 3.73% per year*)
• Member Pack P&I Flexible Home Loan 70-80%: Decrease of 5 basis points to 3.39% per year (comparative rate of 3.83% per year*)

ING

The variable rate cuts for ING apply to both homeowners and investors with both principal and interest (P&I) and interest only (IO) loans on Orange Advantage and Mortgage Simplifier products.

This follows ING’s decision to increase variable rates on home loans by 50 basis points for new and existing customers on July 12.

Key changes to ING’s mortgage portfolio include:

• P&I Mortgage Simplifier 500-999k 80%: Decrease of 15 basis points to 3.19% per year (comparative rate of 3.22% per year*)
• Mortgage Simplifier IO 500-999k 80%: Decrease of 10 basis points to 3.84% per year (comparative rate of 3.86% per year*)
• P&I 500k+ 80% Investment Mortgage Simplifier: Decrease of 10 basis points to 3.44% per year (comparative rate of 3.47% per year*)
• Orange Advantage Variable P&I 500-999k 80%: Decrease of 15 basis points to 3.34% per year (comparative rate of 3.67% per year*)
• Orange Advantage Variable IO 500-999k 80%: Decrease of 10 basis points to 3.99% per year (comparative rate of 4.31% per year*)
• Investment Orange Advantage Variable P&I 500k+ 80%: decrease of 10 basis points to 3.59% per year (comparative rate of 3.91% per year*)

The evolution of the fixed mortgage rate

Westpac increases fixed lending by up to 0.60%

Retaining the top spot among the Big Four with the most fixed rate increases so far in 2022, Westpac increased fixed rate home loans again this week.

Westpac’s increase applies to both principal and interest (P&I) and interest-only (IO) loans for homeowners and investors in Fixed and Premier Advantage products.

Highlights of changes to Westpac’s home loan portfolio included:

• 2-year 95% P&I fixed options: Increase of 60 basis points to 5.69% per year (comparative rate of 5.94% per year*)
• Fixed Options IO 2 years 80%: Increase of 30 basis points to 5.99% per annum (comparative rate of 6.47% per annum*)
• Premier Advantage Fixed Options P&I 2 years 95%: Increase of 60 basis points to 5.49% per annum (comparative rate of 5.10% per annum*)
• Fixed P&I investment 4 years 80%: Increase of 60 basis points to 6.29% per year (comparative rate of 6.48% per year*)
• Fixed Investment IO 4 years 70%: Increase of 50 basis points to 6.49% per year (comparative rate of 6.72% per year*)
• Premier Advantage Investment P&I fixed 4 years 80%: Increase of 60 basis points to 6.09% per year (comparative rate of 5.81% per year*)

ubank increases fixed loans up to 0.95%

Digital lender ubank this week increased fixed-rate home loans in P&I and IO lending options for homeowners and investors.

Key changes to ubank’s mortgage loan portfolio include:

• Own real estate loan P&I fixed 1 year 80%: increase of 95 basis points to 4.69% per year (comparative rate of 3.78% per year*)
• Own Fixed Home Loan IO 1 year 80%: Increase of 95 basis points to 5.33% pa ​​(comparative rate of 3.83% pa*)
• Own investment P&I real estate loan fixed 3 years 80%: Increase of 56 basis points to 5.79% per year (comparative rate of 4.36% per year*)
• Own Investment IO Fixed Home Loan 3 years 80%: Increase of 60 basis points to 6.23% per year (comparative rate of 4.45% per year*)

Teachers Mutual Bank increases fixed rate loans up to 1.50%

Teachers Mutual Bank this week increased fixed rate home loans in Your Way products for homeowners and investors.

Highlights of these increases across the mutual bank portfolio included:

• Your Way P&I Fixed 5 years 90%: Increase of 150 basis points to 7.64% per year (comparative rate of 6.37% per year*)
• Your Way IO Fixed 5 years 90%: Increase of 150 basis points to 8.04% per year (comparative rate of 6.52% per year*)
• Investment Your Way P&I Fixed 5 years 90%: Increase of 150 basis points to 7.94% per year (comparative rate of 6.69% per year*)
• Investment Your Way IO Fixed 5 years 90%: Increase of 150 basis points to 8.34% per year (comparative rate of 6.84% per year*)

UniBank and Firefighters Mutual, which are a division of Teachers Mutual Bank, also increased fixed-rate home loans this week to as much as 1.50%.

Australian Mutual Bank increases fixed lending by up to 1.00%

The Australian Mutual Bank this week increased fixed-rate home loans across all products for first-time home buyers, homeowners and investors.

Main changes in the mutual banking portfolio, including:

• First Buyer Fixed 2 years 95%: Increase of 100 basis points to 5.68% per year (comparative rate of 3.33% per year*)
• Residential Fixed 2 years 95%: Increase of 100 basis points to 5.78% per year (comparative rate of 3.38% per year*)
• Fixed P&I investment 2 years 95%: Increase of 100 basis points to 6.13% per year (comparative rate of 3.86% per year*)
• Fixed Investment IO 2 years 95%: Increase of 100 basis points to 6.33% per year (comparative rate of 3.78% per year*)

Other banks and mutuals, including St George, Bank of Melbourne, Bank of us, Heritage Bank and Move Bank, have all raised fixed mortgage rates over the past week.

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