Fixed rates plunge after RBA emergency rate cut

48 lenders have cut at least one fixed home loan rate in the past week since the RBA's emergency rate cut, according to financial comparison website RateCity.

ING, Australia's fifth largest lender, set to offer the country's lowest home loan rate at just 2.09 per cent, fixed for two years, available from March 26. 

The company announced cuts to its fixed home loan rates by up to 50 per cent for owner-occupiers with the Orange Advantage package. 

Around 80 per cent of fixed home loan rates are now below 3 per cent and more than two dozen lenders offering fixed rates under 2.5 per cent. 

Sally Tindall, research director at RateCity.com.au, said the fixed rate space was hitting boiling point.

“Lenders are putting all of their cards on the table as panicked borrowers seek out home loan security in a market that is changing daily,” she said.

“The move from ING comes after the major banks kicked off a rate war last week with Westpac, NAB and ANZ cutting rates to 2.19 per cent. The question is ‘how low can they go?’.

She noted that we are not far from seeing fixed rates below 2.0 per cent. 

Like many banks, ING has chosen not to cut variable rates following Thursday’s RBA announcement, but offered payment deferrals for up to 6 months for home loans, personal loans and credit cards.

“This will support a lot of Australians in the coming months, particularly those who have been impacted financially as a result of the coronavirus,” she said.