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Following in the footsteps of Australia’s major banks, ING DIRECT has raised its standard variable rate out of cycle with the RBA.
Effective from today, ING DIRECT will increase its residential variable home loan rates by 0.38 per cent p.a – taking the rate on its mortgage simplifier to 7.12 per cent p.a.
Speaking about the rate hike decision, a bank spokesperson said the increase reflects a continued rise in the cost of funding home loans and the recent Reserve Bank cash rate increase.
But while the lender has raised rates out of step with the RBA, it is determined to remain competitive within the industry – abolishing its Deferred Establishment Fees for new and existing residential home loan customers.
The decision is expected to encourage further competition in the Australian home loan market.