Australia’s fifth largest bank, ING, announces interest rate cuts for home loans

Australia’s fifth largest bank, ING, has announced that it is cutting home loan interest rates by 0.15%.

The bank’s interest rates will drop for both new and existing customers, and will be effective from October 16.

The cuts take ING’s lowest variable interest rate for new customers to 2.99%, for home loans over $1 million, and 3.03% for loans under $1 million.

A total of 26 lenders have announced rate cuts for their customers three days after the Reserve Bank cut the official cash rate to 0.75%.

The average interest rate reduction across the owner-occupier home loan market is currently 0.17% and just five lenders are passing on the full 0.25% RBA cut.

The chief executive of RateCity.com.au, Paul Marshall, said there are still dozens of lenders yet to announce what cuts they’ll make.

“With the cash rate now below one%, banks are cautiously considering what to pass onto home loan customers, while still appeasing shareholders and savers,” Marshall said.

“If your bank hasn’t declared their hand, you should call, email or even tweet them into action.”