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The non-major lender has announced changes to its pre-approval assessment process in response to weaker conversion rates.
ING has revealed that as of Monday, 26 August, it will only offer full assessment of home loan applications if a property has been identified and a signed contract of sale is provided to progress the application.
The bank stated that applications for pre-approval will not be assessed by a credit manager.
Further, ING noted that should applications for pre-approval that meet serviceability requirements and include all identification forms are accepted, it would issue a “conditional pre-approval advice”.
In such cases, ING would not verify income or expenses, with the automated assessment based on the data provided.
ING would only verify income and expenses when a property has been located and the loan application is going to proceed to full assessment, it said.
The conditional pre-approval would be valid for 90 days from the date of issue.
Moreover, where a customer has been successful in locating a property and requires formal approval, brokers will now be required to submit the following information:
- an updated loan application form (where there are any changes to personal or financial circumstances)
- a copy of the contract of sale (signed where required and including the purchase price) and details of the customer’s solicitor
- the final loan amount required (including LMI where required)
- most recent income documents (e.g. payslip no older than 30 days)
- where required, most recent savings, loan, credit card statement, etc. (most recent no older than 30 days)
- deal numbers
According to the bank, the changes come in response to a “high number of applications being received” and a “reduction in the conversion rate of pre-approvals applications”.
ING stated that the changes will allow it to offer an “improved turnaround time for all residential loan applications”.
[Related: Westpac revises home lending policy]
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