ING shakes up pre-approval process

Reporter 06:40 AM, 26 Aug 2019 4 minute read

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”.

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ING stated that the changes will allow it to offer an “improved turnaround time for all residential loan applications”.