ING cuts commercial mortgage rates

ING’s commercial mortgage rates for existing customers now start from 3.81 per cent.

“We review our rates regularly to ensure we are best placed to provide our customers with simple, effective banking products,” an ING spokesperson said.

This is the latest of several rate changes from ING in 2019, with the bank recently reducing all of its variable home loan rates by a cumulative 45 bps in response to the Reserve Bank of Australia’s back-to-back cuts to the cash rate.

Last month, the bank also made changes to the way it remunerates mortgage brokers, announcing that it will introduce a six-month review period for upfront commissions paid for broker-originated home loans. 

At present, the non-major calculates the upfront commission, net of offset, on the fifth day following settlement of the associated loan.

However, while commissions will continue to be calculated by ING five days post settlement, brokers will now be remunerated for subsequent drawdowns of the loan, which exceed $10,000, over an additional six-month period. 

Moreover, the bank announced that the review period, which will be effective from 1 July 2019, will be backdated to apply to loans settled from 1 January 2019, with the first payment to eligible brokers scheduled for August 2019.

*The story has been updated to clarify that ING's 3.81 per cent interest rate only applies to existing customers. 

[Related: Bank introduced review period for broker commissions]