The non-major lender has announced changes to its commercial credit policy, including a sharp increase to the maximum LVR for business loans secured with residential property.
ING has announced that effective immediately, it will accept residential property as security against a business loan to a maximum loan-to-value ratio (LVR) of up to 75 per cent, up from 20 per cent.
ING noted that the property must be either owner-occupier, investment or zoned as residential but used for business purposes, with a minimum loan amount of $250,000.
The following conditions must also apply:
ING’s latest announcement follows its recent decision to no longer accept residential property as security for residential loan applications being used for business purposes.
ING recently announced its financial results for the 2018 calendar year, in which its business lending portfolio grew by 11 per cent, rising to $4.5 billion.
The bank reported total lending growth of 11 per cent, expanding its portfolio by $5.5 billion, from $52.5 billion to $58 billion.
Over the same period, ING added more than 400,000 new-to-bank customers, 500,000 new Orange Everyday payment accounts, and a 57 per cent increase in primary bank customers, which now totals 645,000.
Savings accounts under ING’s management also grew, rising by 9 per cent to $43.4 billion.
As a result of its performance over the 2018 calendar year, ING’s net profit after tax rose by 15 per cent, from $348 million to $401 million.
Charbel Kadib is the news editor on The Adviser and Mortgage Business.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.
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