ING lifts investment loan LVR

ING has increased the maximum loan-to-value ratio (LVR) for investment loans from 80 per cent to 90 per cent (with LMI premium). The non-major bank has advised that the change applies to both principal and interest (P&I) and interest-only loans, excluding refinances.

These changes came into effect as of 1 June 2023.

For P&I loans, total borrowings of $150,000 with an LVR of 80.01 per cent to 90 per cent will have a new variable interest rate of 6.14 per cent per annum (p.a.) while interest-only loans will have a new variable interest rate of 6.44 per cent p.a.

ING head of third party and distribution Glenn Gibson said: “From 1 June new applicants purchasing residential property for investment use will only require a 10 per cent deposit, meaning eligible customers can now borrow up to 90 per cent of the value of a property.

“We’ve listened. Brokers and customers have asked us to make changes to our investor offering because they want to come to us for these types of loans.

“We believe these changes will make it easier for first-time buyers with lower deposits that are wanting to purchase an investment property, and existing home loan customers considering an investment property.”

In addition, the non-major bank has introduced an interest-only loan option for owner-occupier fixed-rate loans where the LVR is 80 per cent or less with a minimum loan size of $50,000.

ING drops cashbacks

ING Australia recently announced it will end its cashback promotion on 30 June 2023. Currently, the non-major bank has a $3,000 offer to eligible customers refinancing their home loan to ING.

Mr Gibson commented at the time: “This is in response to changing market conditions, and also a result of feedback myself and team have received as part of our ongoing engagement with brokers.”

Indeed, ING joined the growing list of both major and non-major banks in abolishing their cashback offers.

Suncorp Bank also confirmed it will withdraw its $3,000 Cash Back Boost offer at the close of business this Friday (2 June 2023). Any eligible applications submitted by this date must settle by 28 September 2023 to receive the Cash Back Boost.

At the time of writing, the Commonwealth Bank of Australia (CBA) and its subsidiary Bankwest; National Australia Bank (NAB); and Westpac and its subsidiaries St.George, BankSA, and Bank of Melbourne have all announced the end of their cashback offers.

CBA and Bankwest are currently the only banks to have already stopped cashback incentives, with the deadline being 31 May 2023.

[RELATED: Non-majors begin pulling back cashbacks]