Originally posted on https://www.huntergalloway.com.au/ing-home-loan-review/
ING, also known as ING Direct is a bit different from some of the other banks we have reviewed because (in Australia) they are mostly an online bank.
With some incredibly sharp interest rates, low fees and after a massive shout out from the Barefoot Investor ING has become a very popular bank with savers but what about home buyers?
Today I review ING Direct Home Loans products and put them through their paces.
Note this review, interest rates and product information are correct as at 3rd July 2019 and all of this information is subject to change without any further notification. Any applications for credit are subject to meeting the specific bank’s criteria and the decision is at their final discretion.
The top 5 things ING are good are:
The top 5 things ING aren’t so good at:
ING Direct has a limited range of home loan products, and the 4 most popular include:
ING’s Orange Advantage Home Loan Product is pretty similar to most other banks professional package. This is where you pay one annual fee, and in return get additional discounts, offset accounts and special discounts on insurances and related services.
With ING, you get a 100% interest offset account linked being the Orange Everyday transaction account the barefoot investors personal favourite account.
ING Mortgage Simplifier is the equivalent to a basic home loan. This is a loan that has limited features, but very low (or no) fees, which means you can save large amounts of money over the life of the loan. If you don’t need all the bells and whistles of a Professional Package like the Orange Advantage, the Mortgage Simplifier could be a good one for you.
ING’s Fixed Rate home loan products can help protect you from any unexpected interest rate rises. With a fixed rate term of between 1 to 5 years you can look at having some certainty on your home loan repayments, you can download ING’s Fixed Rate fact sheet.
Interestingly ING also have a fairly strong, and relatively unknown commercial loanoffering. This product is for secured commercial loans (i.e. if you’re buying a property, and not doing a shop fit out) but has fairly good terms.
ING Direct’s home loan rates are pretty sharp compared to some of the larger banks out there. They can get even sharper depending on the time of year, and if they are trying to acquire new customers.
This is where it can get tough, because ING tend to offer much better deals for new customers compared to old customers (check out some of the feedback in the reviews below). So just keep this in mind, and make sure your mortgage broker is regularly reviewing your loan to keep it competitive.
ING’s rates can be very competitive for new customers, and we will update this when ING decides what they are doing with the latest interest rate cut. As I have previously mentioned, interest rates should not be the only deciding factor when going with a bank.
Read More: Home Loan Process [Step-by-step guide]
The documents needed for ING are are little bit more relaxed compared to the majority of banks in Australia. Lets assume you receive a salary and are purchasing your first home, ING would ask for:
So the major difference here is most other lenders like Suncorp, BOQ or ANZ need 3 months statements showing your salary credits and need statements showing any existing credit cards or personal loans that might be open. ING do not need this, they just want to see where your deposit is coming from and confirm your payslips.
The big problem with ING is if you have recently changed jobs.
ING ideally want you to have completed probation, and need you to have been in your role for a minimum of 3 months if you have a 20% deposit, or 6 months if you have less than a 20% deposit and need lenders mortgage insurance.
There are some exceptions where you have been in a similar role previously, or the same industry for up to 2 years but this is looked at on a case by case basis so no guarantees your loan will get approved.
Download: ING Application Form
ING’s credit criteria is subject to change at any time, and all lending is up to credit verification and satisfactory approval. As an indication on how much you can borrow from ING Direct we have run the following scenario through ING’s borrowing calculator.
As you can see from the results, ING are at the very very bottom of how much you will be able to borrow.
In other words, getting a loan through ING compared to another bank would reduce how much you can borrow by $27,909 less.
These figures are indicative and would be subject to meeting credit criteria, valuation and satisfactory verification of all supporting documentation. They are accurate as at 3 July 2019 and subject to change without any further notification.
Would you like to know your borrowing capacity? Chat with our home loan experts to see what you can afford.
They do offer the standard banking products, credit cards, transaction accounts and personal loans.
I guess where they are a bit different is some of their features and incentives.
Provided you have an Orange Everyday account, ING will round up to the nearest $1 or $5 and transfer the extra amount into your home loan helping you pay it off a little faster without even realising. This is called the ING Everyday round up.
In other words, if you have selected to round up to the nearest $5 ING will debit your purchase of say $4 and then transfer $1 from your Orange Everyday Transaction Account to your selected Home Loan Account.
It’s just a neat way of helping chip away at your home loan a little after.
Read More: How to cut 5 years from your home loan
ING’s customer reviews are fairly mixed. While they seem to have fairly high customer satisfaction when the initial loan is set up for new customers, the honeymoon doesn’t last long.
Even though the RBA has been reducing interest rates in 2019, ING actually increased their interest rates out of cycle earlier in the year which pissed off a lot of people.
(Namely existing ING customers)
In our experience, ING are fairly good to deal with and as I mentioned above, for any of our clients that experience rate creep (i.e. they bait you in with a cheap rate then put it up) we look at renegotiating or refinancing.
Don’t worry too much, it is more common than you think to get declined by a bank.
ING is a particularly conservative bank when it comes to assessing loan applications, and while they might offer some really cheap interest rates they can make it difficult to get your loan approved.
They can have very strict lending policies, and if you do not meet their lending policy ING are likely to decline your loan.
Our best tip when applying for a home loan through ING is for your broker to confirm you meet their income policy, and the property you are looking at buying meets their requirements BEFORE you apply for a home loan.
ING bank used to do a full credit assessment on home loan pre-approval.
In other words if you were applying for a pre-approval with ING, a credit manager would go through your payslips, bank accounts and other information to make sure you meet their credit criteria. They would then approval your loan, subject to you finding a property.
BUT this has now changed, don’t get caught out.
They are just doing a credit check if you haven’t found a property, so the pre-approval isnt worth the paper its written on.
Read More: What is Pre-Approval?
The reality is each bank has its own positives and negatives and the best option for you is highly unique.
Ready to take the next step toward buying? We’re happy to help. Schedule a call today with a Home Loan Expert from Hunter Galloway, the home of home buyers.
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact firstname.lastname@example.org