One of Australia’s non-majors has announced it will set its interest rates in line with loan to valuation ratios (LVRs).
Effective from 9 July, 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.
Customers for new borrowings with LVRs of less than 80 per cent will be eligible for reduced interest rates.
Lower LVR customers borrowing $500,000 or more will receive an interest rate of just 5.88 per cent p.a. with an Orange Advantage or SmartPack Mortgage Simplifier.
“We’re looking to attract additional sub-80 per cent LVR business and this pricing structure will make us more attractive to upgraders and investors,” ING DIRECT’s head of broker distribution Mark Woolnough said.
“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 per cent.”
ING DIRECT will also continue to waive SmartPack and Fixed Rate application fees, until further notice.