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Fixed rates plunge to new record low of 2.09 per cent

Fixed rates plunge to new record low of 2.09 per cent

26 Mar, 2020 - 3 min read

Fixed rates plunge to new record low of 2.09 per cent

Banks have launched a fixed home loan war, with ING set to offer the country’s lowest home loan rate at just 2.09 per cent, fixed for two years, available today.

Australia’s fifth largest lender announced sweeping cuts to its fixed home loan rates – slashing rates by up to 0.50 per cent for owner-occupiers with the Orange Advantage package.

ING fixed home loan rates changes – effective 26 March

Available for owner-occupiers paying principal and interest with the Orange Advantage package.

Fixed term	Old rate	New rate	Change
1 year	2.64%	2.19%	-0.45%
2 year	2.59%	2.09%	-0.50%
3 year	2.49%	2.14%	-0.35%
4 year	2.74%	2.49%	-0.25%
5 year	2.74%	2.54%	-0.20%

RateCity’s database shows a further 47 lenders have cut at least one fixed home loan rate in the past week since the RBA’s emergency rate cut.

As a result, around 80 per cent of fixed home loan rates are now below 3 per cent and more than two dozen lenders offering fixed rates under 2.5 per cent.

Sally Tindall, research director at RateCity.com.au, said the fixed rate space was hitting boiling point.

“Lenders are putting all of their cards on the table as panicked borrowers seek out home loan security in a market that is changing daily,” she said.

“The move from ING comes after the major banks kicked off a rate war last week with Westpac, NAB and ANZ cutting rates to 2.19 per cent. The question is ‘how low can they go?’.

“We are one step away from seeing fixed rates starting with a 1,” she said.

Like many banks, ING has chosen not to cut variable rates following Thursday’s RBA announcement. However, it has offered payment deferrals for up to 6 months for home loans, personal loans and credit cards.

“This will support a lot of Australians in the coming months, particularly those who have been impacted financially as a result of the coronavirus,” she said.

The lowest fixed rates on RateCity.com.au

1-year fixed: lowest rates on RateCity.com.au

Lender	Advertised 1 year fixed rate
Reduce Home Loans	2.19%
BankVic	2.19%
G&C Mutual	2.19%

2-year fixed: lowest rates on RateCity.com.au

Lender	Advertised 2 year fixed rate
ING	2.09%
Reduce Home Loans	2.19%
NAB	2.19%

3-year fixed: lowest rates on RateCity.com.au

Lender	Advertised 3 year fixed rate
ING	2.14%
Reduce Home Loans	2.19%
Tic Toc	2.22%

5-year fixed: lowest rates on RateCity.com.au

Lender	Advertised 5 year fixed rate
ING	2.54%
Suncorp	2.69%
BankVic	2.70%

Note: For owner occupiers paying principal and interest. Some changes still to come into effect. Revert and comparison rates are higher.

Disclaimer

This article is over two years old, last updated on March 26, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Product database updated 20 Apr, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Laine Gordon

Head of Public Relations

Laine Gordon is the Head of Public Relations at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.