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ING DIRECT has made changes to its fixed rate products, following similar hikes from the four majors.
Speaking with The Adviser, spokesperson for ING DIRECT David Breen said the lender was moving fixed rates today.
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“One- and two-year fixed rates will remain the same. However, there’s some movement in our three-, four- and five-year rates,” he said.
ING’s three-year fixed rate loan has risen 5 basis points to 489, and the four- and five-year rates have risen by 10 basis points each to 539 and 549 respectively.
The announcement comes as the major banks snuck in a series of rate rises over October.
CBA’s four- and five-year fixed rates rose by 20 basis points each, Westpac’s three-year loan rose 20 basis points earlier this week, while the five-year loan jumped by 24 basis points.
NAB rates moved on Monday with the same pattern as Westpac, while ANZ only raised its three-year fixed rate from 514 to 534 basis points last week.
Speaking with The Adviser, chief economist at HSBC Paul Bloxham said he was of the view that the Reserve Bank of Australia (RBA) was done with cutting rates.
“We believe the easing cycle is done and we are expecting rates to start rising in the third quarter of next year,” he said.
Shane Oliver, chief economist of AMP Capital, shared Mr Bloxham’s views.
“It’s done, it’s over now,” he said.
“We can now expect an extended period of holding from the RBA before a rise next year.
“The reason fixed rates are up is because bond yields are going up - that’s a sign we’ve hit the bottom … The ideal time to fix rates has passed,” Mr Oliver said.
“But there’s still plenty of great deals out there. We’re not going to see fixed rates leap all at once – but if you’re planning on fixing, then it’s something to look at sooner rather than later.”
