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Now that the majors have revealed their cards, the second tier and non bank sectors have sprung into action in announcing their own rates movements, each one jockeying to claim market share following what must surely be the inevitable Big Four aftershock fallout.

First out of the blocks was ING DIRECT; with an increase in its residential variable rate of 38bps.

 "The increase reflects a continued rise in the cost of funding home loans and the recent Reserve Bank cash rate increase," the bank said.

Not to be outdone, non-bank lender Australian First Mortgage announced an increase in its standard variable interest rate of 30bps. 

Director, Iain Forbes, said AFM was now able to back up its service excellence by offering more attractive rates than the banks.

 "AFM has in fact reduced its own margin to demonstrate it is not all about profitability and bottom line results," he said.

It is not surprising that these two lenders are fastest away.

Indeed, The Adviser is carrying a story today that ING DIRECT has ranked ahead of its peers; placing first in 11 categories in the news service's Third Party Banking Report - Second Tier Lenders - an industry first.

Also, last week AFM won the 2010 Brokers on Non-Bank survey conducted by well-known trade rag Mortgage Professional Australia; securing outright wins in seven categories.

ING DIRECT will also abolish its Deferred Establishment Fees for new and existing residential home loan customers.

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