ING has delivered fresh competition in the variable mortgage market, trimming interest rates on its Mortgage Simplifier product for new customers, as markets await the RBA’s May OCR decision.
The bank says the out-of-cycle reductions “will apply to new investor and owner-occupier customers and will cover principal-and-interest and interest-only repayment options.”
ING is cutting rates by up to 0.15 percentage points across most loan-to-value ratio bands, with sharper discounts available for borrowers at or below 70% LVR.
Under the updated schedule, Mortgage Simplifier principal and interest rates for owner-occupiers and investors are being reduced by 0.15% p.a. at LVRs up to 70%, and by 0.10% p.a. in the 70.01–90% LVR range. Interest-only borrowers also see reductions of between 0.10% p.a. and 0.15% p.a., depending on LVR and whether the borrower is an owner-occupier or investor.
The changes apply only to new business, reinforcing the incentive for refinance enquiries from rate-sensitive clients.
ING describes Mortgage Simplifier as “a low, variable interest rate home loan with no ongoing monthly or annual fees and free redraw facilities.” For first-home buyers focused on cash flow, the absence of ongoing fees can support faster principal reduction when combined with the new lower rates.
ING notes that “You can round up eligible Orange Everyday card purchases to the nearest $1 or $5, and the difference goes straight from your Orange Everyday to pay down on your Mortgage Simplifier home loan.”
More about the Mortgage Simplifier here.
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