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The bank has announced changes to its commercial lending policies, which include a doubling of the minimum loan amount for new borrowings.
ING has announced that it will raise the minimum commercial loan amount for new borrowings from $250,000 to $500,000 as of Monday, 16 September 2019.
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The bank also stated that it will increase its commitment fee on new commercial loans under $1 million to $2,000 (previously $1,000), also effective 16 September.
Loans between $1 million to $3 million will require a commitment fee of 0.20 per cent of the loan amount, while commitment fees for borrowings of over $3 million will be determined on application.
Commercial loan applications already in progress with the bank will not be affected by these changes, according to ING.
The announcement comes shortly after recent changes to the bank’s pre-approval process.
Last month, ING revealed that as of Monday, 26 August, applications for pre-approval will not be assessed by a credit manager, and that the bank will only offer full assessment of home loan applications once a property has been identified and a signed contract of sale is provided.
ING said 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, and instead produce automated assessment based on the data provided.
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-approval applications”.
ING said the changes will allow it to offer an “improved turnaround time for all residential loan applications”.
[Related: ING shakes up pre-approval process]
