Online ING Direct quick to move with full rate cut passed on to borrowers

Australia's fifth biggest mortgage lender, ING Direct has thrown down the gauntlet to the major banks by passing on today's RBA cash rate cut in full.

ING Direct will lower the interest rate on its variable mortgages by 0.25 percentage points, effective Monday December 24.

The online bank's most popular home loan the Mortgage Simplifier will reduce to 5.72% p.a.

“Our funding position has eased recently allowing us to pass on 25 basis points, however, the threat of elevated funding costs has not passed completely, " says ING Direct CFO Glenn Baker.

ING Direct has a $38 billion home loan book.