Category: House & Home
Chapter Select
Sub category: Loan
6 June 2019

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 0.20% per annum, effective from 18 July 2019. This is following on from our rate decrease that was effective on the 25 June 2019.

As an ING variable home loan customer, you’ll be receiving a letter (in addition to your letter regarding the 25 June rate change) 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 July 2019.

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 July.

 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 July 2019, all you have to do is:

ING App

  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 0.20% = Your new rate as of 18 July 2019.

Computer/laptop

  1. Login in to ing.com.au/securebanking/
  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 0.20% = Your new rate as of 18 July 2019.

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 July that will clearly state your new rate and your new repayment amount.

Principal & Interest repayments will change from 31 July 2019. Interest Only repayments will change from 1 Aug 2019.

And remember, your variable interest rate won’t change until 18 July, 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.

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

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

Related articles

House & Home
Loading...
Share
Loading...
XS
SM
MD
LG