ING 1% cashback mortgage payments

1. Flimsy overall policy

2. Black and white credit policy - very similar to AMP

3. Terrible borrowing capacity

4. Only allow for 2 offsets per client/couple

5. Terrible cash out / equity release policy

BUT they are great for funding an over 55's development and for vanilla commercial securities.

From a borrowers perspective these may seem draconian, but from a lender's business robustness perspective they could be considered, dare I say, downright prudent if GFC MkII ever rears its ugly head.
 
From a borrowers perspective these may seem draconian, but from a lender's business robustness perspective they could be considered, dare I say, downright prudent if GFC MkII ever rears its ugly head.

They fund over 55's developments whereas only 2 other small tier lender do these. I don't think holding these types of securities for when armageddon hits is a good risk mitigation strategy.

Also limitation of 2 offsets and inability to apply a pragmatic approach to credit decisioning is hardly relevant to GFC.

Taking a step back - the question is "can ING do something exceptionally better than other lenders?" and the answer is most often no.
 
I see them as useful as one of my lenders but I wouldn't try to have more than 2 properties with them.

The issue here is if you say do your first loan with ING and pay LMI. Then you start to grow your portfolio with via other lenders with more generous borrowing capacity.

Meanwhile the property with ING has increased in value and you go back to do an equity release - the problem is that a) you have hit your servicing limit so no more money for you and b) you then need to refinance which means you lose that LMI credit you previously paid.
 
The issue here is if you say do your first loan with ING and pay LMI. Then you start to grow your portfolio with via other lenders with more generous borrowing capacity.

Meanwhile the property with ING has increased in value and you go back to do an equity release - the problem is that a) you have hit your servicing limit so no more money for you and b) you then need to refinance which means you lose that LMI credit you previously paid.

Yes! Agree 100%

That's why using the least generous lenders early on isn't always the best approach.

Cheers

Jamie
 

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Is this what happened to you?
No it isn't. My move to ING was a deliberate choice and part of an overall strategy that I developed with my broker. I have found them to be a great lender for my purposes. But my situation is fairly unique, so probably would not apply to other investors.
 
The issue here is if you say do your first loan with ING and pay LMI. Then you start to grow your portfolio with via other lenders with more generous borrowing capacity.
My refi to ING was at under 80%, so LMI is not an issue.

Meanwhile the property with ING has increased in value and you go back to do an equity release - the problem is that a) you have hit your servicing limit so no more money for you and b) you then need to refinance which means you lose that LMI credit you previously paid.
The loans I have with ING are not ones where I will be wanting any equity release and as above, LMI does not come into this for me. If, down the track, I did need an equity release and ING would not play ball, there is the option of moving to a different lender. My last refi cost less than $1,000, so it's not a big issue.

I think what you are highlighting is really important: a) have a good broker and b) develop a finance strategy with your broker depending on your property investment strategy. If the two don't match up, you are going to run into trouble.
 
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