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Two of Australia’s biggest banks have changed their mortgage rates
Considering a home loan with Macquarie Bank or ING? It may have just gotten cheaper.
Both banks have made changes to a wide variety of their mortgage rates, with Macquarie lowering rates by up to 60 basis points and ING by up to 40 basis points (see tables below).
ING has also increased a few of its home loan interest rates, by up to 11 points.
These interest rate changes apply to selected mortgage offers across:
- Owner-occupied and investment loans
- Principal-and-interest and interest-only loans
Looking at just two of the changes, here’s how they could affect the mortgage repayments on a 30-year, $400,000 loan:
| Macquarie Bank | ING | |
|---|---|---|
| Product | Basic Flyer Investment Loan Fixed (principal & interest, LVR 70-80%) 5 years | Mortgage Simplifier Investment Loan (principal & interest, $150k+, LVR < 80%) |
| Old rate | 4.74% | 4.44% |
| New rate | 4.14% | 4.04% |
| Old repayments | $750,304 | $724,502 |
| New repayments | $699,151 | $690,803 |
| Difference | $51,153 | $33,699 |
Macquarie and ING v the market
So, how do Macquarie Bank and ING compare to other lenders in terms of interest rates?
Macquarie’s loan is priced at 4.14 per cent, while the average rate for all the five-year investment loans on RateCity is 4.82 per cent (as of 31 March 2019).
ING’s loan is priced at 4.04 per cent, while the average for all the variable principal-and-interest loans on RateCity is 4.72 per cent.
That said, it’s important to note that the cheapest mortgage isn’t always the best mortgage. Other factors to consider when weighing up a home loan include:
- Loan fees (upfront fees, ongoing fees)
- Loan features (such as offset account, redraw facility, additional repayments)
- Lender customer service (branch access, call centre, online banking options)
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Macquarie Bank selected changes
| Product | Old advertised rate | New advertised rate | New comparison rate | Change in advertised rate |
|---|---|---|---|---|
| Basic Flyer Home Loan Fixed 1 year (principal & interest, LVR 70-80%) | 4.04% | 3.94% | 3.91% | -10 points |
| Basic Flyer Home Loan Fixed 2 years (principal & interest, LVR 70-80%) | 4.04% | 3.84% | 3.90% | -20 points |
| Basic Flyer Home Loan Fixed 3 years (principal & interest, LVR 70-80%) | 4.04% | 3.84% | 3.89% | -20 points |
| Basic Flyer Home Loan Fixed 4 years (principal & interest, LVR 70-80%) | 4.34% | 3.94% | 3.92% | -40 points |
| Basic Flyer Home Loan Fixed 5 years (principal & interest, LVR 70-80%) | 4.34% | 3.94% | 3.92% | -40 points |
| Basic Flyer Investment Loan Fixed 2 years (principal & interest, LVR 70-80%) | 4.34% | 4.04% | 4.33% | -30 points |
| Basic Flyer Investment Loan Fixed 3 years (principal & interest, LVR 70-80%) | 4.34% | 4.04% | 4.30% | -30 points |
| Basic Flyer Investment Loan Fixed 4 years (principal & interest, LVR 70-80%) | 4.64% | 4.14% | 4.31% | -50 points |
| Basic Flyer Investment Loan Fixed 5 years (principal & interest, LVR 70-80%) | 4.74% | 4.14% | 4.29% | -60 points |
ING selected changes
| Product | Old advertised rate | New advertised rate | New comparison rate | Change in advertised rate |
|---|---|---|---|---|
| Orange Advantage Home Loan (principal & interest, $500k-$1m, LVR < 80%) | 3.93% | 3.85% | 4.17% | -8 points |
| Orange Advantage Home Loan (principal & interest, $1m+, LVR < 80%) | 3.89% | 3.81% | 4.13% | -8 points |
| Orange Advantage Home Loan (interest-only, ($150k-$500k, LVR < 80%) | 4.33% | 4.44% | 4.75% | +11 points |
| Orange Advantage Investment Loan (principal & interest, $150k+, LVR < 80%) | 4.39% | 4.09% | 4.41% | -30 points |
| Orange Advantage Investment Loan (interest-only, $150k+, LVR < 80%) | 4.69% | 4.49% | 4.80% | -20 points |
| Mortgage Simplifier Home Loan (principal & interest, $150k-$1m, LVR < 80%) | 3.88% | 3.80% | 3.82% | -8 points |
| Mortgage Simplifier Home Loan (interest-only, $150k-$500k, LVR < 80%) | 4.28% | 4.39% | 4.41% | +11 points |
| Mortgage Simplifier Investment Loan (principal & interest, $150k+, LVR < 80%) | 4.44% | 4.04% | 4.06% | -40 points |
| Mortgage Simplifier Investment Loan (interest-only, $150k+) | 4.59% | 4.44% | 4.46% | -15 points |
| Fixed Rate Investment Loan 3 years | 4.19% | 4.09% | 5.48% | -10 points |
| Fixed Rate Investment Loan 4 years | 4.69% | 4.59% | 5.51% | -10 points |
| Fixed Rate Investment Loan 5 years | 4.69% | 4.59% | 5.41% | -10 points |
Disclaimer
This article is over two years old, last updated on April 4, 2019. 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 15 Nov, 2024
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