In line with the recent industry trend, a non-major bank has announced several rate changes for new customers that go into effect today, 27 March.
As of this morning at ING Australia, new owner occupier variable rate loans with P&I repayments have decreased by 0.08%, while those with interest-only repayments increased by 0.11%.
New investment variable rate loans with P&I and interest-only repayments will decrease by up to 0.40%, while new investor 3-, 4- and 5-year fixed rate loans will decrease by 0.10%
“As with several other lenders, the larger decreases are for new loans to investors, confirming just how deep the fall in demand for investment lending has been,” noted Canstar’s group executive of financial services, Steve Mickenbecker.
For new owner-occupied borrowers with 80% LVR, the rate decrease would amount to approximately $4,931 in savings over the life of a 30-year $300,000 loan.
For new investment borrowers, the rate change could amount to as much as $25,274 in savings over the life of a 30-year $300,000 loan.
“ING has joined the lenders reducing rates for new loans, while rates for existing borrowers remain unchanged,” said Mickenbecker.
In the weeks past, non-majors Suncorp, Macquarie, and ME Bank have been just a few of the many lenders implementing rate cuts of their own.