90% with (almost) no LMI for everyone!!!

[Peter_Tersteeg]

Just got a very interesting flyer from ING. I'd heard that they were making some changes to their LMI policies, but I didn't see this coming:

$1 LMI Promotion

Effective for loan applications received from Wednesday 26 November 2014 and until further notice, ING DIRECT will offer Lenders Mortgage Insurance (LMI) for $1 where certain criteria are met.
To be eligible for this promotion, loan applications must satisfy the following criteria:
 New loan application with new to ING DIRECT security property
 LVR (including the $1 LMI premium) must be greater than 80% and less than or equal to 90%
 Loan application must include Orange Advantage
 Loan purpose must be to purchase an Owner Occupied property
 Repayment type must be Principal & Interest (for the total loan amount)
 Meet LMI credit guidelines

Keep in mind that ING isn't exactly a preferred lender for investors, this is for owner occupied property only and the loans must be principal & interest. Their serviceability model (for investors) is terrible, their cash out policy is a nightmare, etc, etc, etc.

For the first home buyer or a refinancer who doesn't intend to leverage their home later, this looks pretty sweat though...

 

[Marty McDonald]

Omg!!!!!!!!

 

[Jamie M]

It's good news - pity it's restricted to certain parameters but it will be a great fit for some.

Cheers

Jamie

 

[D.T.]

Can't see how it'd be useful to anyone here

 

[Marty McDonald]

I wonder what happens when you switch to IO after settlement ?

 

[datto]

Nah......it's a bit of a joke really.

 

[Rolf Latham]

Hey people

Wake up

Its


ING .............................


ta
rolf

 

[spludgey]

Good thing is also that you'll be able to claim the LMI over 5 years, so that's 20c per year!

 

[D.T.]

Good thing is also that you'll be able to claim the LMI over 5 years, so that's 20c per year!

20c in the dollar deductions, thats almost as good as companies

 

[datto]

Hey people

Wake up

Its


ING .............................


ta
rolf

What's their number?. I'll show em how to do investment loans...

 

[pinkboy]

April Fools come late this year?

pinkboy

 

[neK]

I wonder what happens when you switch to IO after settlement ?

What about owner occupied then changing it into an investment due to unforeseen circumstances?

 

[Peter_Tersteeg]

I wonder what happens when you switch to IO after settlement ?

No idea, but ING does require a re-assessment of the application to do this. This gives them a few options:
* Simply don't allow owner occupied LMI loans to be interest only as a matter of policy.
* New loan, new LMI policy (charged in full).

There's actually a lot of people who read the forum as first home buyers or owner occupiers for whom this might be relevant. They're simply not as loud around here as some of the idiotic regulars.

 

[Redom]

Great policy and fits with ING - particularly for first home buyers!

 

[Mick C]

Already got 2 x 88% loan lined up ready to go tomorrow morning hahah


But yea ING is a terrible "serviceability " lender...so good to use early up ie first 1-2 loans.

 

[Corey Batt]

Already got 2 x 88% loan lined up ready to go tomorrow morning hahah


But yea ING is a terrible "serviceability " lender...so good to use early up ie first 1-2 loans.

Or never at all if you're intending on being a serious investor.

Very interesting for the FHBer field though!

 

[Peter_Tersteeg]

But yea ING is a terrible "serviceability " lender...so good to use early up ie first 1-2 loans.

Unfortunately that approach falls very flat when they want to go back and access their equity a few years later.

ING are either a set and forget or just don't bother at all type lender.

 

[Mick C]

Agree....but not everyone wants to be an aggressive "investor" as such...so yep good for your set and forget First home buyers whos not going to buy again for a good 3-4 years or buyers whos looking to buy only 1-2 properties over a 5-7+ period.

ING didn't set out to pick up all the 90% loans....but they have their place, even without the $1 promo

 

[perthguy]

Unfortunately that approach falls very flat when they want to go back and access their equity a few years later.

ING are either a set and forget or just don't bother at all type lender.

I am not sure if I like the sound of that. I am just refinancing all my loans to them It could get interesting I guess. I am pretty sure I can get out of it though

 

[Terry_w]

I don't remember the last time I used ING for a client.