ING last night confirmed that it will cut variable rates for new owner-occupiers, but appears to be backing away from extending relief to existing borrowers and new investors.
In an email sent to mortgage brokers last night, ING said it was lowering rates on principal and interest home loans to new owner-occupiers by 0.17 per cent from today.
While the repricing might be viewed by some commentators as the bank moving ahead of the RBA's flagged official rate next week, the announcement is potentially controversial given that ING has not signalled it intends providing similar rate relief to borrowers glued to its A$50 billion back book.
Mortgage lenders are under pressure from Canberra and the central bank to pass on the full benefit of next week's 0.25 per cent official rate cut as policymakers try to revive consumer demand in the economy.
Banks are likely to come under intense public pressure from the Morrison government if they decide to withhold rate relief from existing borrowers and only pass on part of the reduction to new home buyers.
ING risks putting itself in the eye of such a storm if Canberra's jaw-boning of the industry takes an extreme turn next week.
Under the changes communicated to brokers yesterday, ING's owner occupier rate for Orange Advantage loans will be sliced 17 basis points to 3.68 per cent for a loan of up to $500,000.
The rate on ING's Mortgage Simplifier product will be reduced to 3.63 for a loan of up to the same amount.
ING is the second home lender to move before the next RBA board meeting after Mortgage House on Wednesday announced it had lowered its standard variable rate to an industry-leading 3.29 per cent.
Prospective official rate moves are also sparking repricing activity in the business lending market, with Suncorp yesterday announcing cuts to fixed rates for secured borrowers.
According to Canstar, Suncorp now markets the cheapest 3 year fixed rate business loan in Australia after slashing its Business Essentials Fixed Loan by 0.3 per cent.
For loans above $150,000 Suncorp is levying a rate of 4.14 per cent to borrowers able to stump up a residential security.
That offer pips Newcastle Permanent Building Society that is marketing secured business loans over three years at 4.16 per cent.
Suncorp has been chasing business borrowers in the last six months to counter a slide in home loan volumes that is attributable in part to its faltering broker servicing platform.
Mortgage brokers have told Banking Day that Suncorp's systems are unable to cope during periods of high demand.
This has resulted in processing delays on loan applications.