+ Comprehensive customer service
+ Ability to bundle loans with other financial products
+ 24/7 contact centre
x No branches
x Annual fees are attached to some loans
ING has been providing Australians with a number of options for refinancing their homes since 1999. Their online-only application and technology make it easy to apply, as well as access money and other necessary information.
Some consumers may want to have the reliability of a fixed rate of interest for at least part of the term of the loan. ING recognises this, and provides the customer with five different fixed rate products.
The shortest period for an ING fixed rate mortgage. After one year, this product reverts to the variable interest rate.
A way for customers to achieve a little bit more peace of mind from their home loan. This product reverts back to a variable rate after two years.
The mid-period fixed rate product from ING. Once three years are up, the loan reverts back to a variable rate.
Customers looking for extended periods of fixed interest rates will find their needs covered by ING. This product reverts to a variable rate after four years.
The longest terms of fixed interest available from ING, this time providing five years before reverting to a variable rate.
Each tier of ING’s fixed interest rate products feature the following;
The Basic Mortgage Simplifier from ING is the institution’s entry level variable interest rate mortgage, providing competitive interest rates to consumers in Australia. This is the product to which fixed rate loans will revert to at the end of the fixed period.
Customers selecting this home loan package receive the following features;
Orange Advantage is a variable interest rate home loan which is designed with transparency and reliability in mind. With this product, ING aims to take the complication out of applying for a home loan and receiving a settlement.
The Orange Advantage is 100% interest offset, instantly providing an attractive advantage to the consumer. Customers can also receive the following benefits as part of their Variable Orange Advantage loan;
ING offers a wide variety of choices in mortgages, giving customers between 80% to 90% on owner-occupied homes. In their ING Guide On Refinancing, they make the following suggestions to help homeowners get a better deal.
Verify that the interest rate promised will be the actual rate throughout the life of the mortgage, rather than just an introductory offer that is raised later. Some lenders raise the rates after an introductory period to a higher than average amount, which could easily make it more difficult to pay.
Applying to many lenders simultaneously can lead to a lower credit score. Lenders see this as a move of desperation and will question a borrower’s ability to handle credit wisely. It is better to find a lender that looks promising and deal with them first.
ING also suggests that borrowers be able to make advance payments on their mortgage, which will enable them to pay less interest and overall costs, as well as being able to pay the loan off sooner. It is also a good idea, they say, for borrowers to have enough extra money to be able to afford rate hikes when the mortgage shifts to a variable rate loan from a fixed rate loan.
Comparing loans can be made easier and more accurately when comparison rates are used. This is because the figure given for a comparison rate takes into consideration the interest and the other applicable fees. It also reveals more accurately what the costs will be if dealing with an introductory rate or a fixed rate at the start of the mortgage.
It is also suggested by ING that all the costs of a mortgage be taken into account when looking at a mortgage. Fees will vary between lenders, and it could make a difference of thousands of dollars. Also, check to see if there are some fees that may be unnecessary in the borrower’s situation, which only means paying more for a mortgage. Features have extra charges, too, and some may not have any value to the particular borrower.
When looking to refinance a home loan, ING provides good financial advice. With their many mortgage options and excellent customer service, it is certainly worth a look.
Refinancing means applying for a new home loan to pay off your existing mortgage. It’s a popular choice for homeowners who want to gain access to a better interest rate, consolidate their debts or gain access to equity in their home loan.
The process of refinancing generally involves speaking to your current lender to see if they can get you a better home loan package. Then, you would need to apply for a new home loan and exit your existing one either with your current provider or a different one.
You can normally borrow up to 80% of your home’s current value when refinancing. You will need to have your home valued so the lender can assess your current LVR (loan to value ratio) and determine this account.
If you’re unsatisfied with your current home loan, can easily cover the costs involved in refinancing, have a solid credit score and still have plenty of time left on your mortgage, refinancing can be a good idea.
If the value of your home has depreciated, you may not be eligible to refinance. However, if the value has increased considerably, you may be able to get access to even better interest rates.
If you refinance to a home loan with an owner occupier clause, you may be required to stay in your home for 6 to 12 months after refinancing. Otherwise, you will likely be free to rent out your property or sell immediately if you choose to.
Refinancing can lead to significant savings in a number of ways. Firstly, it normally allows you to get access to a better interest rate, which can save you thousands of dollars down the track. You may also be able to switch to a shorter mortgage term and pay off mortgage your faster, which means less interest repayments. It can also allow you to consolidate multiple debts, which can streamline your finances and reduce the amount of fees you’re paying.