ING goes against the grain increasing fixed interest rates

From tomorrow ING will be increasing its fixed rate home loans for owner occupiers by up to 0.20% and for investors by up to 0.40%.

ING is one of only three lenders on Canstar's 100+ lender database to increase fixed rates in June.

These changes will see ING’s former market leading 2-year orange Advantage Residential fixed rate of 2.09% drop out of the top 3 lowest 2-year fixed rates, with the interest rate now sitting at 2.19% (comparison rate 3.79%). 

Canstar’s finance expert, Steve Mickenbecker said, "ING has surprised the home loan market by increasing its fixed housing loan rates from Friday."

"ING’s fixed rate increases come after recent fixed rate cuts from major banks that have been fueled by low wholesale funding costs."

"For owner occupiers the increases range from 0.05% to 0.20%, but for investors they are as high as 0.40%, suggesting the bank is reviewing its appetite for housing risk."

"ING’s 2-year fixed rate for owner occupiers remains amongst the market leaders, but they have relinquished their lowest price position."

"Fixed rates continue to be at the sharpest priced end of the market with rates as low as 2.09%."