Market-wide mortgage repricing steams ahead following second RBA rate hike of 2026
Australia’s sixth-largest lender ING has increased its fixed principal-and-interest mortgage rates by 35 basis points across the board following the Reserve Bank of Australia (RBA)’s latest cash rate hike.
The all-important three-year fixed rate has been bumped up to 6.24%, with the one-year rate increasing to 6.29% and the two-year rate increasing to 6.19% on principal-and-interest loans with LVRs of 70% or less.
The three year fixed rate on principal-and-interest loans with LVRs between 80% and 90% has been increased to 6.34%, with the one-year fixed rate increasing to 6.39% and the two-year fixed rate increasing to 6.29%.
Interest-only loans have increased by 25 basis points.
Major and non-major banks have enacted a sweeping repricing of their mortgage rates following after the RBA increased the cash rate to 4.1% earlier this month. It marked the second 25-basis-point hike in as many months.
Each Big Four bank – Commonwealth Bank, NAB, ANZ and Westpac – intends to pass through the latest rate hike on variable loans by the end of this month.
Some banks have opted to increase fixes by 25 basis points, although ING may be seeking to get ahead of the curve in anticipation of further cash rate hikes down the line.
The Australian bond markets are pricing in up to three more rate hikes, bringing the terminal rate up to 4.85%. With higher funding costs in store, lenders are acting to protect margins.
“ING regularly reviews its home loan rates to ensure they remain sustainable and aligned with broader funding and market conditions. As part of our latest review, we’ve made adjustments to our fixed home loan rates across both owner‑occupier and investor products,” said Sergio Delvescovo, national sales manager, retail broker channel at ING Australia, in comments sent to MPA.
“These changes reflect shifts in funding costs and the pricing environment more broadly, and ensure we can continue offering competitive products while supporting customers responsibly,” added Delvescovo. "Any customer who may be concerned about how this change affects them is encouraged to get in touch with us so we can work with them on the best way forward.”
