Following a review of its interest rates, a non-major bank has announced that the variable rate for all new commercial loan applications less than $500,000 will increase by 20 basis points from 13 October 2017.
In a message to its aggregation partners, ING said that the change will not impact applications received before this date or existing ING commercial loans. The group noted that where a formal approval expires and requires re-assessment, the interest rate current at that time will apply.
"To help streamline our assessment process, effective from 13 October 2017, applications with more than two borrowers or multiple security properties will no longer be acceptable for new-to-bank commercial loan applications less than $500,000. Please note, our minimum loan size remains at $250,000," the bank said.
Also effective from today, new commercial loan applications with more than two borrowers or multiple security properties will no longer be acceptable for new to bank commercial loan applications less than $500,000.
At the end of August, ING revealed that it is working on shortening turnaround times for priority commercial mortgages, but admitted that it needs brokers’ help.
Speaking at ING’s broker roadshow in Sydney on 25 August, Adriana Sheedy, ING's executive director of operations, acknowledged that its turnaround times for commercial transactions were slower than desired, but that the lender was looking into improving it.
When asked a question from the floor as to why its turnaround times for commercial deals were “seven or eight days” rather than the ideal “three or four”, Ms Sheedy said: “I hear you loud and clear… and we have a dedicated team that is going in and reviewing our process, particularly for commercial mortgages.
“I think one of the lessons we learned from the last implementation on the resi side is that we tried to digitise a process that wasn’t very good, as opposed to reviewing the process, making it good and then digitising where it needed to be digitised.
“We don’t want to make that same mistake again with PCM, which is why we’re taking a different approach before we dive into spending millions on technology [so] we’re making sure that process is as robust as possible.”
Ms Sheedy continued: “We’re looking at turnaround times and how we structure our teams across sales, across operations — we’ve had really good success rolling out end-to-end working on the resi side and we’re looking at doing that now for PCM.
“As soon as that process is compete, out of that will come the digitisation options, so we're planning on delivering what those priorities are over the next 12 months for our road map for next year.”
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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