Another out-of-cycle rate increase for non-major

by Rebecca Pike31 Jan 2019

Another bank has decided to increase its mortgage interest rates, the third rate change it has made in the last seven months.

ING has announced that from 7 February variable rates for all customers will increase by 0.15%.

The hike comes after ING previously lifted variable rates by 0.10% in July last year and by 0.15% for investors in September.

This means ING owner occupier customers on a variable rate are facing a total increase of 0.25% on their home loan rate since July, despite the Reserve Bank of Australia not increasing rates.

Research director at RateCity.com.au, Sally Tindall, said it is disappointing to see ING hiking rates again.

She added, "Today’s announcement will come as a surprise to some ING customers who weren’t expecting a second out-of-cycle rate hike.

"The cost of funding pressures are real and here to stay, and we expect more lenders to follow in a second round of hikes."

While ING is not the only bank to have increased rates in the first month of 2019, other lenders have managed to cut rates. 

Fixed investment rates at the Teachers Mutual Bank, Firefighters Mutual Bank and UniBank have decreased for new customers.