Two of Australia’s biggest banks have changed their mortgage rates

Considering a home loan with Macquarie Bank or ING? It may have just gotten cheaper.

Both banks have made changes to a wide variety of their mortgage rates, with Macquarie lowering rates by up to 60 basis points and ING by up to 40 basis points (see tables below).

ING has also increased a few of its home loan interest rates, by up to 11 points.

These interest rate changes apply to selected mortgage offers across:

  • Owner-occupied and investment loans
  • Principal-and-interest and interest-only loans

Looking at just two of the changes, here’s how they could affect the mortgage repayments on a 30-year, $400,000 loan:

Macquarie Bank ING
Product Basic Flyer Investment Loan Fixed (principal & interest, LVR 70-80%) 5 years Mortgage Simplifier Investment Loan (principal & interest, $150k+, LVR < 80%)
Old rate 4.74% 4.44%
New rate 4.14% 4.04%
Old repayments $750,304 $724,502
New repayments $699,151 $690,803
Difference $51,153 $33,699

Macquarie and ING v the market

So, how do Macquarie Bank and ING compare to other lenders in terms of interest rates?

Macquarie’s loan is priced at 4.14 per cent, while the average rate for all the five-year investment loans on RateCity is 4.82 per cent (as of 31 March 2019).

ING’s loan is priced at 4.04 per cent, while the average for all the variable principal-and-interest loans on RateCity is 4.72 per cent.

That said, it’s important to note that the cheapest mortgage isn’t always the best mortgage. Other factors to consider when weighing up a home loan include:

  • Loan fees (upfront fees, ongoing fees)
  • Loan features (such as offset account, redraw facility, additional repayments)
  • Lender customer service (branch access, call centre, online banking options)

Need help with your home loan?

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Macquarie Bank selected changes

Product Old advertised rate New advertised rate New comparison rate Change in advertised rate
Basic Flyer Home Loan Fixed 1 year (principal & interest, LVR 70-80%) 4.04% 3.94% 3.91% -10 points
Basic Flyer Home Loan Fixed 2 years (principal & interest, LVR 70-80%) 4.04% 3.84% 3.90% -20 points
Basic Flyer Home Loan Fixed 3 years (principal & interest, LVR 70-80%) 4.04% 3.84% 3.89% -20 points
Basic Flyer Home Loan Fixed 4 years (principal & interest, LVR 70-80%) 4.34% 3.94% 3.92% -40 points
Basic Flyer Home Loan Fixed 5 years (principal & interest, LVR 70-80%) 4.34% 3.94% 3.92% -40 points
Basic Flyer Investment Loan Fixed 2 years (principal & interest, LVR 70-80%) 4.34% 4.04% 4.33% -30 points
Basic Flyer Investment Loan Fixed 3 years (principal & interest, LVR 70-80%) 4.34% 4.04% 4.30% -30 points
Basic Flyer Investment Loan Fixed 4 years (principal & interest, LVR 70-80%) 4.64% 4.14% 4.31% -50 points
Basic Flyer Investment Loan Fixed 5 years (principal & interest, LVR 70-80%) 4.74% 4.14% 4.29% -60 points

ING selected changes

Product Old advertised rate New advertised rate New comparison rate Change in advertised rate
Orange Advantage Home Loan (principal & interest, $500k-$1m, LVR < 80%) 3.93% 3.85% 4.17% -8 points
Orange Advantage Home Loan (principal & interest, $1m+, LVR < 80%) 3.89% 3.81% 4.13% -8 points
Orange Advantage Home Loan (interest-only, ($150k-$500k, LVR < 80%) 4.33% 4.44% 4.75% +11 points
Orange Advantage Investment Loan (principal & interest, $150k+, LVR < 80%) 4.39% 4.09% 4.41% -30 points
Orange Advantage Investment Loan (interest-only, $150k+, LVR < 80%) 4.69% 4.49% 4.80% -20 points
Mortgage Simplifier Home Loan (principal & interest, $150k-$1m, LVR < 80%) 3.88% 3.80% 3.82% -8 points
Mortgage Simplifier Home Loan (interest-only, $150k-$500k, LVR < 80%) 4.28% 4.39% 4.41% +11 points
Mortgage Simplifier Investment Loan (principal & interest, $150k+, LVR < 80%) 4.44% 4.04% 4.06% -40 points
Mortgage Simplifier Investment Loan (interest-only, $150k+) 4.59% 4.44% 4.46% -15 points
Fixed Rate Investment Loan 3 years 4.19% 4.09% 5.48% -10 points
Fixed Rate Investment Loan 4 years 4.69% 4.59% 5.51% -10 points
Fixed Rate Investment Loan 5 years 4.69% 4.59% 5.41% -10 points

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