ING has slashed fixed rates to a new market low

Australia’s fifth largest bank, ING, has cut fixed rates to as low as 2.49 per cent on its 3-year fixed rate.

This is currently the lowest fixed rate on the RateCity.com.au data base.

ING has shaved all of its 1- to 5-year owner-occupier rates by up to 0.35 per cent and investor rates by up to 0.40 per cent.

Since the RBA announced the 0.25 per cent cash rate cut on Tuesday, a total of four lenders have lowered their fixed rates.

BankVic is hot on the heels of ING, today cutting its fixed rates to now offer 2- and 3-year year loans as low as 2.50 per cent.

RateCity.com.au research director Sally Tindall said other lenders were likely to chase after ING in a bid to hold market share.

“The fixed rate war continues with the nation’s fifth largest lender now playing hard-ball in the fixed rate space,” she said.

“With ANZ, and now ING, offering market-leading rates, we expect other banks will start sharpening their prices in a bid to remain competitive.

“Fixed rates are a great tool to get new business in the door, particularly in this environment of record low rates. But with one more cash rate cut still likely, we probably haven’t seen the bottom of fixed or variable rates just yet,” she said.

Almost 50 lenders have announced variable rate cuts, following Tuesday’s RBA decision.