ING DIRECT will offer LVR based interest rates on its popular Orange Advantage and SmartPack Mortgage Simplifier products to reward customers taking loans with lower LVRs.
As of July 9, customers for new borrowings with LVRs of less than 80% will be eligible for reduced interest rates. Lower LVR customers borrowing $500,000 or more will receive an interest rate of just 5.88% p.a. with an Orange Advantage or SmartPack Mortgage Simplifier.
“We’re looking to attract additional sub 80% LVR business and this pricing structure will make us more attractive to upgraders and investors. We’ve also taken on feedback and reduced the threshold under Orange Advantage and SmartPack from $300,000 down to $250,000 which will appeal to a wider market.
“Whilst we’ve made various improvements to our service proposition this year, we certainly haven’t overlooked the importance of sharply priced, competitive products, and these changes highlight this.
“Another positive, based on feedback from our broker partners, is that we’ve aligned Orange Advantage and SmartPack Mortgage Simplifier price points for loan amounts above $250,000 with LVRs below 80%.” said Mark Woolnough, Head of Broker Distribution at ING DIRECT.
ING DIRECT will also continue to waive SmartPack and Fixed Rate application fees, until further notice.
LVR Based Interest Rates – from 9 July 2012
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ORANGE ADVANTAGE |
Interest Rate |
Comparison Rate |
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|
Aggregate Borrowings <$250k |
6.34% p.a. |
6.52% p.a. |
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|
Aggregate Borrowings $250k+ |
6.16% p.a. |
6.34% p.a. |
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LVR BASED INTEREST RATES where LVR is ≤ 80% 1. |
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Aggregate Borrowings $250k to <$500k |
5.98% p.a. |
6.16% p.a. |
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|
Aggregate Borrowings $500k+ |
5.88% p.a. |
6.06% p.a. |
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|
SMARTPACK MORTGAGE SIMPLIFIER * |
Interest Rate |
Comparison Rate |
|
|
Aggregate Borrowings $250k+ |
6.16% p.a. |
6.20% p.a. |
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LVR BASED INTEREST RATES where LVR is ≤ 80% 1. |
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Aggregate Borrowings $250k to <$500k |
5.98% p.a. |
6.02% p.a. |
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Aggregate Borrowings $500k+ |
5.88% p.a. |
5.92% p.a. |
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Information is current as at the date of this update and is subject to change. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. WARNING: The comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292. AFSL and Australian Credit Licence Number 229823. Aggregate borrowing refers to total residential ING DIRECT borrowings, excluding lo-doc loans. * Interest rate discounts under SmartPack available when borrowing $250,000 or more in aggregate. SmartPack fee applies. 1. LVR based interest rates apply to new loans with a new security property only. LVR based interest rates do not apply to applications for fixed rate or construction loans.
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