ING slices fixed rates to undercut all competitors
The battle to lock in fixed rate mortgage customers continues to heat up with online bank ING Direct reducing its three-year fixed-rate mortgage below the offerings of the major banks.
The online bank has cut its three-year fixed-rate home loan to 6.29%, below that of Westpac, St George as well as Greater Building Society and Credit Union Australia (CUA) who have all cut their fixed rates in the last seven days.
The bank has also cut its four- and five-year rates to 6.59% and 6.69% respectively.
ING Direct executive director of delivery Lisa Claes says the cuts are aimed at the bank maintaining its “competitive position in what is a very active market for fixed rate loans".
"Historically customers would need to pay a premium for a fixed loan. Currently that is not the case. We haven't seen such a difference between the variable rate and long-term fixed rates for some time.”
St George’s is offering its three-year fixed-rate mortgage at 6.39%, while parent bank Westpac is offering a rate of 6.44%.
Commonwealth Bank’s three-year fixed rate stands at 6.59%, as does NAB’s online offering UBank.
CUA is offering a rate of 6.34% while the Greater is offering a three-year rate of 6.35%.
The new ING Direct three-year fixed rate matches the rate offered on AMP Select Package Residential 3 Year Fixed, currently the cheapest fixed rate product offering according to comparison website Ratecity.com.au.
