Category: House & Home
Chapter Select
Sub category: Loan
4 March 2020

Home loan interest rates are changing soon, so how will it affect you?

We recently announced that all our new and existing variable home loan rates will decrease by 0.25% per annum, effective from 18 March 2020.

As an ING variable home loan customer, you’ll be receiving a letter from us with your updated rate and minimum repayment amount.

How will this affect my mortgage?

Whether you hold an investor or owner occupier variable home loan with ING, this rate reduction will be applied to your loan on 18 March 2020.

Lower rates? Sounds great! But we’re sure you have more burning questions, like:

  1. What will my new interest rate be?
  2. What will my new repayments be?

Your new interest rate and repayments will be sent to you in writing in March.

 How do I find out my new interest rate now?

If you’re eager to know what your new interest rate will be, you can work it out. It just involves a little bit of math. To calculate what your new interest rate will be from 18 March 2020, all you have to do is:


  1. Open your ING app
  2. Select your Home Loan account
  3. Select the interest tab to find your current interest rate
  4. Follow the below calculation to work out your new reduced interest rate

Your existing interest rate minus the rate reduction of 0.25% = Your new rate as of 18 March 2020.


  1. Login in to
  2. Go to ‘my accounts’then select your home loan
  3. Your current interest rate is displayed here
  4. Follow the below calculation to work out your new reduced interest rate

Your existing interest rate minus the rate reduction of 0.25% = Your new rate as of 18 March 2020.

What will my new repayment be?

Repayments are a little trickier to calculate as there are a number of things that need to be taken into consideration, like the remaining term of your loan and your loan balance.  Look out for written confirmation in March that will clearly state your new rate and your new repayment amount.

Principal & Interest repayments will change from 31 March 2020. Interest Only repayments will change from 1 April 2020.

And remember, your variable interest rate won’t change until 18 March, so for now it’s business as usual.

What’s the difference between Principal & Interest and Interest Only repayments?

Principal and Interest repayments are when you pay a portion of the loan balance in addition to the interest charged over an agreed period. This is to ensure the loan is paid back over the term of the mortgage. Loan repayments will include part of the loan and part of the interest on the loan.

Interest Only repayments are when you’re paying the interest of the balance with no principal over an agreed period.

If you need more support, simply call our contact centre on 133 464 (24/7) to speak with a Mortgage Specialist.
Call us on 133 464

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