All about ING Home loan options

All about ING Home loan options

Categories: Home Loans

ING Direct is one of those lenders who have a limited number of home loan options but with a very competitive mortgage rate and offering. If you are considering an ING home loan this is a must-read.

We have done a lot of research and put together a detailed blog post about ING Direct’s home loan product offering and its best features as well a deep dive into the ING home loan product’s lending policy.

Our review of ING Home Loan products:

The good stuff:

  • Very competitive home loan offers and a simple product suite
  • Access funds with any ATM in Australia for free
  • Good internet banking app
  • Local call center access 24/7 call 133 464
  • Easy to deal with and great customer reviews
  • Package includes insurance discounts and a credit card with some cashback options
  • One free valuation per application
  • No pricing variances (rate discounts regardless of whether you go direct or via other channels)

The not so good stuff:

  • No branch access
  • No interest only repayment option on fixed rates
  • Serviceability assessment calculated at 8% (considerably higher than the usual 7.25%)
  • Rental incomes assessed at 65% of current or expected amount (compared to 80% generally with other lenders)

ING Home Loan Product Offerings:

First off ING Direct’s got 3 home loan products for both owner occupiers and investors:

  • ING Mortgage Simplifier
  • ING Orange Advantage
  • ING Fixed Rate Loan

ING Mortgage Simplifier

A low variable interest rate home loan with no ongoing monthly or annual fees. $0 application fee, transaction fees or account keeping fees. Free redraw without a minimum amount. Which means that borrowers can put any extra available funds into the loan account and redraw as they please. Additional unlimited repayments allowed to help pay off faster. Could Bpay and salary credit directly to the account.

ING Mortgage Simplifier Interest Rates if borrowing less than $150,000
Loan TypeInterest Rate
Owner Occupiers - Principal and InterestInterest Rate - 4.70%
Comparison Rate - 4.72%
Owner Occupiers - Interest OnlyInterest Rate - 5.05%
Comparison Rate - 5.07%
Investor - Principal and InterestInterest Rate - 4.95%
Comparison Rate - 4.97%
Investor - Interest OnlyInterest Rate - 5.30%
Comparison Rate - 5.32%
ING Mortgage Simplifier Interest Rates if borrowing between $150,000 and $500,000
Borrowing typeRepayment TypeLVR (Loan to Value Ratio)Interest RateComparison Rate
Owner occupierPrincipal and Interest80% or less3.94%3.96%
Owner occupierPrincipal and InterestAbove 80% and less than or equal to 90%4.19%4.21%
Owner occupierPrincipal and InterestMore than 90%4.70%4.72%
Owner occupierInterest Only80% or less4.29%4.31%
InvestorsPrincipal and Interest80% or less4.69%4.71%
InvestorInterest Only80% or less4.84%4.86%
ING Mortgage Simplifier Interest Rates if borrowing less than $500,000
Borrowing typeRepayment TypeLVR (Loan to Value Ratio)Interest RateComparison Rate
Owner occupierPrincipal and Interest80% or less3.89%3.92%
Owner occupierPrincipal and InterestAbove 80% and less than or equal to 90%4.19%4.21%
Owner occupierPrincipal and InterestMore than 90%4.70%4.72%
Owner occupierInterest Only80% or less4.29%4.31%
InvestorsPrincipal and Interest80% or less4.69%4.71%
InvestorInterest Only80% or less4.84%4.86%

ING Orange Advantage Home Loan

A variable rate home loan with a 100% interest offset facility. Ability to combine with ING’s fixed rate home loan without the fixed rate application fee ($499 of savings). All the features of the mortgage simplifier with an offset account and credit card in one package for $299/year.

ING Orange Advantage Interest Rates if borrowing less than $150,000
Loan TypeRate
Owner Occupiers - Principal and InterestInterest Rate - 4.75%
Comparison Rate - 5.05%
Owner Occupiers - Interest OnlyInterest Rate - 5.15%
Comparison Rate - 5.45%
Investor - Principal and InterestInterest Rate - 5.05%
Comparison Rate - 5.35%
Investor - Interest OnlyInterest Rate - 5.40%
Comparison Rate - 5.70%
ING Orange Advantage Interest Rates if borrowing between $150,000 and $500,000
Borrowing typeRepayment TypeLVR (Loan to Value Ratio)Interest RateComparison Rate
Owner occupierPrincipal and Interest80% or less3.79%4.11%
Owner occupierPrincipal and InterestAbove 80% and less than or equal to 90%3.97%4.29%
Owner occupierPrincipal and InterestMore than 90%4.75%5.05%
Owner occupierInterest Only80% or less4.14%4.45%
InvestorsPrincipal and Interest80% or less4.54%4.85%
InvestorInterest Only80% or less4.69%5.00%
ING Orange Advantage Interest Rates if borrowing less than $500,000
Borrowing typeRepayment TypeLVR (Loan to Value Ratio)Interest RateComparison Rate
Owner occupierPrincipal and Interest80% or less3.74%4.06%
Owner occupierPrincipal and InterestAbove 80% and less than or equal to 90%3.97%4.29%
Owner occupierPrincipal and InterestMore than 90%4.75%5.05%
Owner occupierInterest Only80% or less4.14%4.45%
InvestorsPrincipal and Interest80% or less4.54%4.85%
InvestorInterest Only80% or less4.69%5.00%

Fixed Rate Home Loan

A competitive fixed interest rate home loan with the flexibility to lock in rates from one to five years. Remeber no interest only repayments option available with fixed rate home loans. Borrowers have the option to pay off $10,000 extra each 12 months with no break costs.

Fixed Rate Home Loan Interest Rates
 Owner OccupiersOwner Occupiers with Orange AdvantageInvestor
1 year fixed rateInterest rate 4.19%
Comparison rate 4.68%
Interest rate 4.09%
Comparison rate 4.67%
Interest rate 4.24%
Comparison rate 5.55%
2 year fixed rateInterest rate 4.14%
Comparison rate 4.62%
Interest rate 4.04%
Comparison rate 4.60%
Interest rate 4.19%
Comparison rate 5.41%
3 year fixed rateInterest rate 3.89%
Comparison rate 4.51%
Interest rate 3.79%
Comparison rate 4.48%
Interest rate 4.39%
Comparison rate 5.34%
4 year fixed rateInterest rate 4.44%
Comparison rate 4.64%
Interest rate 4.34%
Comparison rate 4.60%
Interest rate 4.59%
Comparison rate 5.32%
5 year fixed rateInterest rate 4.29%
Comparison rate 4.56%
Interest rate 4.19%
Comparison rate 4.51%
Interest rate 4.49%
Comparison rate 5.20%

 

Lending policy. Key points that you should be aware of:

  • Looking to buy a unit or apartment? The internal living area has to be more than 40 square metres. This excludes balconies and car spaces.
  • Full time or permanent part-time applicants need to have been employed for 3+ months (6 months where LMI applies) with the current employer or have spent 2+ years in a similar role
  • If on contract income need to have worked in the same industry or similar role for 2+ years
  • Casual income will be considered if the person has been with their current employer for 6+ months, or similar industry or role for 2+ years
  • In the case where if you claim that you live rent free the following expenses will be added:
    • Sole applicant: $910/month or $210/week
    • Two applicants: $1084/month or $250/week
    • Two applicants with a kid: $1734/month or $400/week
  • Serviceability assessment calculated at 8% (considerably higher than the usual 7.25%)
  • Rental incomes assessed at 65% of current or expected amount (compared to 80% generally with other lenders)
  • Assessment of different income streams and policy guide:
Income typePolicy
Base IncomeRequire 2 payslips (no more than 60 days old) or 3 months bank statement showing a regular salary credit, with the name of the employer
Overtime or Shift Income80% allowed if evidenced over 12 months and expected to be a regular component of a borrowers salary
PAYG allowances80% allowed, but must not exceed 25% of the applicant's salary income
Bonus and CommissionsCan be considered 80% if
- Monthly/quarterly basis, income to be evidenced over 12 months
- Annual/irregular payments, income to be evidenced over 2 years
- Commission cannot be more than double the base salary
Rental IncomeAssessed at 65% of current or anticipated amount.
- Current lease agreement or rental statement
- Letter from licensed real estate agents

 

Overall ING tries to make it easier to deal with them and has a great product range. Most mortgage brokers would have access to ING products via their aggregators. Through the LoanDolphin marketplace, we have seen some mortgage brokers who are willing to share part of their commission with borrowers to create more value.

Note that the above information was current and valid at the time and may have changed without any notice.

 

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