Australians got to know ING, previously known as ING Direct, 20 years ago when it introduced the first high interest, fee-free online savings account in Australia.
Since then, it has introduced credit cards, transactional banking, superannuation, home loans, personal lending and insurance, becoming Australia's fifth largest bank and winning many awards along the way.
Product and service offerings
ING Direct has three basic home loans for owner occupiers and investors.
Mortgage Simplifier
This is ING's basic home loan. It comes with a variable rate and very low or no fees. If you don't plan to use a lot of other ING services and don't need multiple loans, this is an option for you.
- Unlimited additional repayments.
- Rate discounts when borrowing over 90% LVR and on higher value loans.
- Additional discount when taken as part of a professional package.
- Available on owner-occupied and investment properties.
- Redraw available.
- No ongoing monthly or annual fees.
- Competitive interest rates on loans over $150,000.
- No offset account available.
- No construction loan options given.
Orange Advantage
ING’s professional package with a variable rate and an annual fee. It comes with rate discounts, offset accounts, and special discounts on other ING services like insurance.
- 100% interest offset account linked to transaction account.
- Rate discounts when borrowing over 90% LVR and on higher value loans.
- Split loans with extra discounts.
- Fee-saving on all loans under the package.
- No monthly maintenance fees on transaction accounts.
- An annual fee that’s cheap compared to big banks.
ING Fixed Rate
A home loan for owner-occupiers or investors, offering repayment certainty and available for 1 to 5 years.
- Additional repayments limited to $10,000 per annum.
- Deposit of 20% or more needed.
- Interest only repayment not allowed on owner occupied fixed rate loans.
- Maximum loan term of 30 years.
- Additional rate discount with professional package.
- Repayments can be set weekly, fortnightly or monthly to suit your earnings.
- Application fee waived if you take a professional package.
- Break up costs for early repayment.
- No redraw facility.
- No ongoing monthly or annual account keeping fees.
Why ING Direct home loans are different
- Home loans available with less than 10% LVR deposit.
- LMI waived on borrowing up to 80% LVR.
- Investment loans need up to 20% deposit.
- Unlimited additional repayments on variable rate loans and up to $10,000 on fixed rate loans.
- Can refine repayment terms to Principal & Interest or Interest Only.
- Flexible payment schedules with monthly, fortnightly, and weekly (in some cases) payments.
- Use round-ups on card purchases to pay down variable rate loans if you bank with ING.
Record on rate cuts
ING has a history of continually reviewing their interest rates in order to remain competitive within the Australian marketplace.
Eligibility and documents
If you are in salaried employment and planning to buy your first home, ING would typically ask for the following to approve your home loan.
- Duly completed and signed Application Form and Privacy Act form by all applicants.
- Identification documents, which can be your current Medicare card, driver's licence, or an Australian passport.
- Two most recent payslips dated less than 60 days ago.
- PAYG summary for those getting overtime, bonuses, or commissions.
- Evidence of genuine savings if less than 10% deposit. If over 10% LVR deposit, you need evidence of deposit funds.
- Employment history:
- Been in current role for at least 3 months with 20% deposit and LMI;
- Been in your job for 6 months with less than a 20% deposit and LMI;
- Case-by-case acceptance if you have been in a similar role or same industry for 2 years.
- Signed Contract of Sale.
Pros and cons
Here are the pros and cons of ING Direct Home Loans in comparison with other lenders’ offerings.
Pros
- Interest rate discounts for new customers.
- Relatively relaxed approach to documentation compared to big bank lenders.
- Pre approval you can count on.
- A fairly strong apartment policy compared to others, with fewer size and postcode restrictions.
- Excellent cash-out policy, enabling you to get up to 80% LVR with minimal explanation.
- A suite of affordable commercial property loans that come with lower fees compared to most big banks.
- A range of products which offer additional benefits when combined with home loans.
Cons
- No construction loans available.
- 'Loyalty tax' on existing customers, with no rate renegotiation potential.
- Can be relatively slow to approve, especially when compared to digital lenders like Nano.
- A conservative credit criteria.
- Not suitable if you have been in your job less than 3 months.
- Not ideal for investors or home buyers with less than 10% deposit.
- No branch network.
