Non-major launches LVR-based pricing

by Mackenzie McCarty03 Jul 2012

A national mortgage lender will offer sharper pricing for sub-80% LVRs from the beginning of next week.

ING Direct has announced that it will launch LVR-based interest rates for its Orange Advantage and SmartPack Mortgage Simplifier products to reward customers with lower LVRs.

From July 9, customers with less than 80% LVR who are borrowing more than $500,000 will be eligible for a reduced interest rate of 5.88%

Head of broker distribution Mark Woolnough said the price adjustments would encourage more sub-80% LVR business, making ING Direct more popular with investors and upgraders.

“Whilst we’ve made various improvements to our service proposition this year, we certainly haven’t overlooked the importance of sharply priced, competitive products," Woolnough said.

ING Direct has also reduced the lending threshold under Orange Advantage and SmartPack from $300,000 to $250,000 which the bank said will likely appeal to a wider market.

The bank said based on feedback, it had also aligned the Orange Advantage and SmartPack Mortgage Simplifier price points for loan amounts above $250,000 with LVRs below 80%, which are now both 5.88%.