Top Variable Rate Options
A week after major bank NAB increased its variable rate home loan products, online lender ING has followed its path. The lender will raise its rates on all their variable rate home loan products effective on February 7, 2019. According to Peter Marshall, Mozo Product Data Manager – “It’s a pretty big move and I think it’s a reflection of the bank bill swap rate remaining elevated.
A lot of banks moved rates last year to cover increased funding costs and while the bank bill swap rate did fall back a bit towards the end of last year, it has since jumped again.”
“As a result of the latest jump I think it’s very likely that we’ll see even more lenders looking to increase variable rates in the near future – something I fully expect the RBA to consider when making their rates decision.”
Mozo calculated how much increase it will impact in their consumers. If a customer paying principal and interest on a $400,000 Orange Advantage Package home loan will now pay an extra $411 in repayments each year which is rises from 3.78% to 3.93%. Marshall states that there is a possibility that ING customers will start to look around for better options and go find a much better deal. Below are the top variable rates from Mozo.