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.