ING Direct offers cash for mortgage switch

8
67

ING Direct is looking to take advantage of the backlash against the big banks by offering $1,000 to customers who switch their mortgage to the small lender.

The foreign-owned bank says anyone who brings their mortgage across to ING Direct and opens an Orange Everyday transaction account before June next year will receive $1,000.

Customers need to register for the offer by the end of November.

“Switching banks should be easier and this $1,000 is an incentive for people to start the process,” ING Direct chief executive Don Koch said in a statement on Tuesday.

“If customers become more mobile, banks will be forced to offer better value and better service.”

ING Direct’s variable home loan interest rates vary from 6.71 per cent to 7.34 per cent, depending on the particular product.

National Australia Bank offers the lowest mortgage rates of the big four banks at 7.24 per cent, followed by ANZ (7.41 per cent), Westpac (7.51 per cent) and Commonwealth Bank (7.81 per cent).

ING Direct began operating in Australia in 1999, and with no branches deals with its customers over the phone or online.

It has more than 1.4 million customers, with $37 billion in mortgages and $22 billion in deposits on its books, it says.

AAP

About the author

8 COMMENTS

  1. Richard me old mate….how are you?

    So the majors just happened (all of ’em) to talk about scrapping their exit fees right about now did they?

    And ING just happened to come up with the very cunning plan to offer one ‘large’ at around the same time too. Amazing!

    It’s gotta be cheaper to pay the punters a grand rather than payout a lot more to the brokers I would think. (Brokers aren’t in the mix on this deal are they?)

    Don’t get me wrong, it’s evidence of competition, so I agree with you mate.

    But just so we’re on the same page. Who or what prompted the ‘new competition’ (It’s not like ING have only just arrived on the scene either)

    The majors pulled back on ‘exits’ just days after the government flagged that they were going to regulate them out (exit fees that is), irrespective of what the banks said they would or wouldn’t do.

    That’s the ‘Invisible Hand’ working the market, not market players.

    As Martin Ferguson says…..it was the ‘Gummant’. The majors didn’t help competition. It was due to a public backlash that translated into political opportunism then to the inevitable regulatory changes, which ultimately provided the environment for a competitor to step up.

    Mate, you & me need a blog.

    Competition it is. But the majors weren’t the architects.

  2. Hi Broker in the ‘burbs,

    Brokers are included in the $1K deal. I got an email from ING yestereday confirming it.

  3. Hi X,

    Well then….bonus. Ya gotta love the boys and girls at ING eh?

    My new best friends 🙂

  4. Great offer and ING have a great story … enjoy waiting for a 2 week approval and also no return calls from the BDM …because …..drum roll…..he/she is too busy…
    What a farce…..you see folks here is a a great large bank(global also) with all the ticks and approvals you need and all they can do is offer money to switch when they could give it to brokers , offer great service and everyone is happy …but as I said ….. the 11 commandment …”Brokers ,shall not make money”..go figure!

  5. Broker, it was the public that drove this response, just as it should be – the government and the opposition collectively could not run a choko vine over a sh*thouse wall, let alone actually achieve positive change in the finance industry in Australia.

    My point on the other article was that the increase in margins by CBA was creating opportunity for competition and that it was a good thing for competition. I don’t recall claiming that CBA did it for love of competition.

LEAVE A REPLY

Please enter your comment!
Please enter your name here