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The changes, effective from today (23 September), apply across its Orange Advantage and Mortgage Simplifier home loans, with rates moving by between 5 and 10 basis points.
For owner-occupied principal and interest loans, rates have increased by 5 bps for borrowers with an LVR of 60 per cent or below, 60.01–70 per cent, and 70.01–80 per cent.
Meanwhile, rates have fallen by 5 bps for Orange Advantage owner-occupied P&I loans with an LVR above 80 per cent.
ING has also cut rates by 10 bps for Orange Advantage investor loans, covering both principal and interest and interest-only repayments, where the LVR is between 80.01 and 90 per cent.
The lender has made no changes to Orange Advantage investor P&I loans below an 80 per cent LVR.
For applications already in the pipeline that have not yet reached formal approval, customers will receive the lower of the rate applicable when the application was submitted or the rate applicable at formal approval.
ING said its interest rate tables on its broker portal will be updated to reflect the changes.
A spokesperson for ING said: “We regularly review our pricing in response to changing market conditions and movements in interest rates.
“Following a review of our home lending portfolio and taking into account recent developments in domestic and global markets, we’ve made targeted adjustments to support a sustainable home lending business that continues to meet the needs of our customers over the long term.”
Interest rate decision looms
All four major banks are now forecasting a 0.25-percentage-point increase at the RBA’s 28–29 September meeting, which would take the cash rate to 4.6 per cent.
The shift follows a higher-than-expected underlying inflation reading of 3.6 per cent in July, with the major banks bringing forward their forecasts for the next rate hike.
ANZ has also forecast a second 0.25-percentage-point increase in November, which would take the cash rate to 4.85 per cent.
The prospect of another rate increase has already seen lenders begin moving fixed rates, while brokers have warned that even the prospect of tighter monetary policy can weigh on buyer confidence.
Policy changes afoot
While a variety of lenders have already moved their fixed rates, other lenders are adding ways to give back a degree of serviceability.
Bankwest has expanded its LMI waiver to include several new professional and government employee groups, while Bank of Sydney is offering LMI-free lending up to 90 per cent LVR to eligible professionals.
Elsewhere, ME Bank has increased its maximum property value for upfront valuations from $2 million to $3 million, while RedZed has cut rates across its commercial lending range.
Better Mortgage Management has also reduced rates on its Lease Doc commercial product, with pricing starting from 7.54 per cent for loans below 65 per cent LVR.
Read more about the latest policy developments here.
[Related: Non-bank turnaround times stretch beyond a week]
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