ING Cuts Fixed Rates: What Owner-Occupiers Need to Know

ING has cut one- and two-year fixed rates by up to 0.20 percentage points for owner-occupied P&I loans, taking effect from 17 July.

ING has moved to trim its fixed home loan rates for new owner-occupied, principal and interest customers, with reductions of between 0.10 and 0.20 percentage points taking effect for loans settled on or after 17 July 2026. MPA Australia reports that the changes span one- and two-year fixed rate products across three loan-to-value ratio tiers.

For borrowers watching the fixed versus variable debate closely, this is a notable move. It signals that at least one non-major lender is prepared to sharpen its fixed offering even as the broader rate environment remains elevated — and for owner-occupiers with strong equity positions, these rates could now look genuinely competitive.

What Are ING's New Fixed Rates?

The cuts are tiered by LVR, so the best rates go to borrowers with the strongest equity or deposit positions.

For borrowers with an LVR of 80% or below — meaning a deposit or equity position of at least 20% — the one-year fixed rate falls by 0.20 percentage points to 6.34% per annum, with a comparison rate of 6.05%. The two-year fixed rate at this tier drops by 0.15 percentage points to 6.29% per annum, with a comparison rate of 6.08%.

At the mid-tier — LVR between 80.01% and 90% — the one-year rate falls 0.15 percentage points to 6.49% per annum (comparison rate 6.29%), and the two-year rate drops 0.10 percentage points to 6.44% per annum (comparison rate 6.31%).

Borrowers with an LVR above 90% will see the one-year rate fall by 0.15 percentage points to 6.59% per annum (comparison rate 6.71%), and the two-year rate reduce by 0.10 percentage points to 6.54% per annum (comparison rate 6.69%).

Worth noting: at the sub-80% LVR tier, both comparison rates (6.05% and 6.08%) sit below the advertised fixed rates. This happens when a lender's ongoing fees are relatively low — it is a useful indicator that the total cost of the loan may be lower than the headline rate suggests. At the high-LVR tier (above 90%), the comparison rate exceeds the advertised rate, which typically reflects the higher cost profile once the loan reverts to a variable rate after the fixed term ends.

Comparison rates are one of the most practical tools for comparing home loan costs across lenders, since they fold fees and charges into a single annual figure.

Should You Fix Your Rate Right Now?

Variable rate cuts from the Reserve Bank of Australia have been top of mind for borrowers this year, but many households are wondering whether it is smarter to lock in now rather than waiting for further reductions that may or may not arrive on schedule.

The case for fixing is straightforward: payment certainty. You know exactly what your repayments will be for one or two years. "For customers looking to manage their household budget with confidence, these lower rates provide another way to save on their home loan and plan ahead," said David Jackson, mortgages tribe lead at ING Australia.

ING recently recorded the highest home loan customer satisfaction among Australian banks — not a rate metric, but relevant context for borrowers weighing up whether to move their loan to the lender.

The case against fixing is equally clear: if the RBA continues cutting, you will not benefit from variable rate reductions while locked in. Fixed rate loans also typically restrict or cap additional repayments, which can limit your ability to reduce your principal faster.

A split structure — part fixed, part variable — is a common middle ground. The fixed portion provides certainty; the variable portion stays flexible and allows extra repayments. A repayment calculator can help you compare your current situation against the new ING rates and see what the monthly difference would actually look like.

Who Should Look at Refinancing to ING?

The strongest candidates for ING's new fixed rates are owner-occupiers with an LVR at or below 80% who hold a variable loan and are looking for payment certainty over one or two years. The 0.20 percentage point cut at the sub-80% tier is the largest reduction on offer, and the resulting 6.29% two-year fixed rate could represent a meaningful saving against a higher variable rate.

But refinancing has real costs: discharge fees from your current lender, a new property valuation, and potentially lenders mortgage insurance if your LVR sits above 80% at the new lender. Those costs should be weighed carefully before making any move.

If you have been sitting on a variable loan and are considering locking in, ING's move is a timely prompt to explore your refinancing options and assess whether the numbers add up over one or two years. Non-major lenders have been gradually winning market share from the Big Four — it pays to compare broadly rather than defaulting to a major bank.

ING's new rates apply to loans settled on or after 17 July 2026. If you are currently in the process of applying for a loan or refinance, the cut takes effect on settlement, not on the application date — so the timing of your settlement matters. A refinance savings calculator can give you a clearer picture of potential annual savings before you take the next step.