ING Direct Lender Review - Are Their Home Loans The Right Fit For You?

In Australia, ING Direct (also just known as ING) is an online bank that gained popularity through its no-fee transaction accounts and high-interest rate savings accounts. Throw in convenient 24/7 online banking and a plug from the Barefoot Investor, Australia’s favourite money guru, and their popularity has soared.

But what are their home loans like? In this article, we’ll look at ING Direct home loan products and ask:

• Who is ING and what do they offer?
• What types of home loan products do they have?
• Who’s eligible for an ING home loan?
• What’s the home loan application process like?
• What are the pros and cons?

Are you on the hunt for a home loan and wonder how ING compares? Then let’s look at how they stack up and who they’re suitable for.

Who Are ING And What Do They Offer?

ING Direct is a subsidiary of the ING Group, a Netherlands banking corporation founded in 1743. Trading as ING Direct in Australia since 1999, it’s predominately an online bank over here.

They initially gained traction by offering convenient online banking paired with top-rated customer service. And their highly competitive no-fee high-interest savings accounts offered the types of rates and benefits that other Australian banks struggled to meet.

Scott Pape, The Barefoot Investor, gave ING a shout-out in his best-selling money management book. And thus, their popularity rose even more. Thanks in a great deal to the Barefoot Investor, the financial products they’re most known for are:

• ING Orange Everyday Account: A no-fee bank account for your everyday banking needs.
• Savings Maximiser: A no-fee variable high-interest online savings account. It was the first of its kind in Australia.

Most people are familiar with these popular offerings. But many are unaware of the type of home loan products ING has. And that’s what we’re about to cover.

YouBroker is an ING Bank accredited mortgage broker

As an accredited ING Bank mortgage broker, we are able to assist you, check and qualify, get approval, and track you through the A-Z of the ING Bank mortgage process. We have access to:

• ING's Underwriting rules, policy and calculation engine so we can see if you qualify (without harming your credit rating).
• Access to talk to ING Bank mortgage officers from both front office, assessment teams, and back-office teams.
• Access to order a formal property valuation via ING Bank, which allows us to see upfront if your property has enough equity in it
• Access to get custom pricing discounts, and see if ING Bank will compete harder (than advertised) for your business, based on your LVR, product types, and your overall lending amount. Usually larger lending over $750,000 allows for higher discounts.
• We can also use our tools to compare ING Bank vs. other banks to see which ones are the best overall fit for you.

What Types Of Home Loans Do ING Provide?

ING has three types of home loan products. Their variable home loans are the Orange Advantage and Mortgage Simplifier. The other home loan option is their Fixed Rate home loan. Let’s explore the features and benefits.

ING Orange Advantage Variable Rate Home Loan

This is their professional package and by far the most popular home loan product that ING has on offer. This is what you’ll get:

• Variable interest rates.
• A low annual fee. It’s lower than the fees of the Big 4 Australian banks.
• Low-interest rates, particularly if you’re borrowing a large amount (over $500, 000) and have a sizeable deposit saved.
• 100% offset account for a linked Orange Everyday bank account.
• Unlimited additional loan repayments and a redraw facility.
• The ING Everyday Roundup feature lets you round up transactions to the nearest $1 or $5 from your Orange Everyday bank account. You can nominate to put that amount straight towards your home loan balance. That way you can pay it off faster!
• Available for both owner-occupied and investor borrowers.
• Want a mix of flexibility and predictability? You can have a split variable and fixed-rate loan. ING will waive the $499 fixed-rate application fee. And if you’re an owner-occupied borrower, you’ll save with a fixed-rate interest discount of 0.10%.

ING Mortgage Simplifier Variable Rate Home Loan

The Mortgage Simplifier is a more stripped-down, basic home loan product, hence the name. Here’s what you’ll get:

• Variable interest rates.
• No ongoing fees. However, variations or switches to your home loan will incur fees.
• Free unlimited repayments and a redraw facility.
• The ING Everyday Roundup feature is available for the Mortgage Simplifier home loan too.
• It doesn’t have an offset account.
• At times, it can offer the same low-interest rates as the Orange Advantage home loan. But this is dependent on ING’s current promotions and offers.
• Available for property investors and owner-occupied borrowers.

ING Fixed Rate Home Loan

• A fixed-rate loan term for up to 5 years.
• Comes with rate and repayment certainty.
• No ongoing fees.
• You can set your repayments for either monthly, fortnightly, or weekly instalments.
• Free additional repayments up to $10, 000 per settlement anniversary.
• Interest discounts are available for owner-occupied loans that combine with an Orange Advantage variable loan.
• For a one-off fee, you can lock in an interest rate up to 90 days prior to the settlement date.
• If you repay your loan early costs could apply.

Pre-approval is available across all ING home loans. When you’re on the lookout for your new home, the pre-approval process can help you to know what homes are in your price range for your financial situation.

Am I Eligible For An ING Home Loan?

In order to be eligible for an ING home loan, you must meet the following criteria:

• Over 18 years of age.
• Have a stable and regular income, like a pay-as-you-go (PAYG) position.
• A good credit score.
• A healthy financial situation and deposit.
• An Australian citizen or have permanent residency.
• Job stability. They prefer applicants to be in the same job for at least three months with a 20% deposit. It’s 6 months with a deposit of less than 20%.
• ING Bank do tend to be one of the more strict banks when it comes to mortgages. They have a more narrow view of what they will approve, and if you are looking to borrow at higher levels, there are often better choices. Once you have a completed YouBroker profile, you will be able to see how much ING Bank will lend you.

ING home loans will not be suitable for all borrowers. Anyone expecting to have a more complex home loan such as casual employees and contractors may need to look elsewhere. Those who are self-employed can still apply, but they tend to be very strict with more complex applications.

Also, those who have had past credit issues may not be eligible for an ING home loan.

What Is The ING Home Loan Application Process?

You can apply for an ING home loan online, via an ING lending specialist or mortgage broker, like YouBroker.

As ING don’t tend to consider complex home loan applications at all, you may find their required documentation to be less involved than that of some banks and lenders. Generally, they’ll require the following to process an application (although this can differ depending on your individual financial situation):

• Personal identification such as your Passport, Medicare card, or driver’s licence. Your identification will need to provide proof of your date of birth, address and name.
• Proof of income such as 2 of your most recent payslips or a recent PAYG summary.
• If you’re self-employed you’ll need to provide 2 years’ worth of up-to-date tax documentation such as a Notice of Assessments and an Individual Tax Return (ITR) completed. You can get copies of these on the Australian Government MyGov platform, just link up your ATO profile.
• A living expenses declaration (you can check out our guide to living expenses here)
• Details of assets such as savings accounts, credit card accounts and other bank statements.
• Information on your assets and liabilities.
• The Contract of Sale (when you have the home under contract).

The ING home loan application is known for being a little bit tough for some, as indicated in the criteria outlined earlier.

If you expect to have a more complex home loan, it’s a good idea to consider employing the services of a reputable mortgage broker, like YouBroker. A good mortgage broker can give you guidance on which banks and lenders consider low doc and complex home loans, what the best deals are, and what you’ll need to provide to get approved.

Mortgage brokers can take the hassle out of home loan applications. Just be sure to check they are accredited with an Australian Credit Licence or are an Authorised Credit Representative (ACR).

What Are The Pros And Cons Of An ING Home Loan?

A home loan with an online bank such as ING won’t be suitable for everyone. Having an online operation can mean that lower running costs can flow onto you as great interest rates and deals. However, these rates and deals can often mean limited eligibility for some.

So, let’s break down the pros and cons of a mortgage with ING Direct to see if they’re a good fit for you.

The Pros

• ING Direct has been called Australia’s most recommended bank. They pride themselves on offering award-winning customer service.
• As they’re an online bank with less overhead costs, so you can potentially get great deals.
• They offer competitive interest rates and low and no-fee options across many of their financial products.
• Their interest rates do tend to be in the top 20-30% of the most competitive at any given time.
• Rebates when you use any ATM in Australia.
• They are often fairly fast at approving loans, typically if within 4 days maximum (usually 2-3 days are typical assessment times).
• Pay off your home loan sooner with additional repayments.
• They offer a wide range of financial products, unlike some of the newer neobanks.
• If you’ve got a larger deposit or equity position, you may be eligible for a lower interest rate (i.e. under 70% LVR).

The Cons

• They have a conservative lending policy, favouring those with healthy equity, deposits and good credit scores.
• They also lend to be on the lower end of the spectrum when it comes to the borrowing power they offer.
• If you’re the type that likes to pop into a physical branch to talk to someone, then this isn’t the bank for you. Their services are online or via the phone. Although they do technically have a branch you can visit, it is located in their head office in Sydney. If you can’t make it there, you’re out of luck.
• They’re not a good option for more complex loans. If you have past credit issues or non-PAYG employment then you will often have better luck with a different lender.
• They may offer competitive interest rates and low or no fees... But they’re very restrictive when it comes to their home loan eligibility criteria. Many people don’t make the cut.

Disclaimer: The information was correct at the time of publishing this article. Banks and lenders may update their products and policies from time to time.

If you want up-to-date information and professional guidance when shopping for a home loan, you can contact YouBroker for assistance: https://youbroker.com.au/contact-us/ or to view ING's latest rates, get started on your YouBroker profile and head into the Rates Catalogue to compare ING Bank to other banks including Macquarie, UBank, Suncorp, AMP Bank, NAB and more.

The Wrap Up

So there you have it, an ING home loan review to help you in your real estate buying or refinancing journey.

ING home loans have some really great features, such as low or no fees, competitive interest rates and extra repayment options. In addition, ING offers some great cashbacks and deals from time to time. They often have some really exceptional deals available.

On top of this, their other financial services like their transaction accounts and savings accounts are top-rated products with the Barefoot Investor’s seal of approval.

However, to make the cut for an ING home loan, you need to tick the boxes of a pretty strict criterion. They also tend to lend lower amounts so you’ll most likely need a bigger deposit.

And if you’ll be needing a more complex loan then they may not be the right fit.

If you’re confused about whether you’d qualify for an ING home loan, or you think your application will be more complex, you can contact a reputable mortgage broker, like YouBroker. We can help you with the process.

Hopefully, this has answered some of your queries about ING as a home loan provider. If you’re after more articles on lifestyle, real estate and finance, check out YouBroker’s articles here: https://youbroker.com.au/articles/

Looking For A Mortgage Broker?

Are you in the market for a home loan? Is comparing lenders and interest rates becoming too time-consuming and confusing?

At YouBroker, we understand that navigating the whole home buying and refinancing process can be overwhelming.

YouBroker can help you to find a home loan and lender that’s the best fit for your individual needs.

We can:

• Compare home loan products, interest rates, and deals across multiple banks and lenders,
• Get you access to the best rates, deals, and cashbacks.
• Look at your finances and living expenses and help you with budgeting tips,
• Work out your borrowing power so you know what type of home loan amount you may be eligible for,
• Delve deep into different home loan products and lenders that offer the right fit for your goals and needs, and
• Help you to navigate the real estate buying or refinancing process and limit your chances of getting knocked back for a loan.

At YouBroker, we offer a convenient, online mortgage broker service that provides:

• Support and expert advice from our fully accredited team,
• Quick approvals,
• Streamlined and convenient digital application process,
• A fully secure online platform, and
• Digital updates via our online portal. 

If you’re looking to make the home loan application process a breeze, we’re ready to assist. Want to know more? Then let’s get started!