Australia’s fifth largest home loan lender ING is lifting variable home loan rates by 0.15 per cent. The rate hike will impact both new and existing variable home loan customers when it comes into effect on 7 February, 2019.
On the average $350,000 home loan, owner occupiers paying principal and interest will be charged around $30 extra per month, or $360 annually, on the Orange Advantage product.
Today’s hike comes after ING previously lifted variable rates by 0.10 per cent in July last year and by 0.15 per cent for investors in September.
This means ING owner occupier customers on a variable rate are facing a total increase of 0.25 per cent on their home loan rate since July.
Sally Tindall, research director at RateCity.com.au, said it is disappointing to see ING hiking rates again.
“Today’s announcement will come as a surprise to some ING customers who weren’t expecting a second out-of-cycle rate hike,” she said.
“The cost of funding pressures are real and here to stay, and we expect more lenders to follow in a second round of hikes.
Ms Tindall said that while banks were hiking rates for existing customers, some lenders were cutting rates for new customers to get more business in the door in a slowing market.
“If your bank decides to hike rates in 2019, you don’t have to take it lying down,” said Tindall.
“If you’re on a variable rate it’s your right take your home loan down the road to a lender offering a more competitive rate,” she said.
Impact of rate hike
Orange Advantage Principal and Interest LVR 80% or less