Any experience with ING?

Since we are going to access equity from PPOR, we wanted to consider refinance with another lender if suits.
Current lender CBA.
Broker said as per his numbers ING would be best to refinance with unless CBA renegotiates to a better rate.
Only reason of considering staying with CBA is LMI paid a couple of years ago which is still deductible for another 2 or so years.
PPOR is IO , current rate with CBA is 4.27
ING is offering 3.79 with IO on PPOR
Any one had any good/bad experiences with ING especially when it comes to accessing equity?
Thanks in advance!!

 

The LMI is tax deductible on a PPOR loan?
Who advised that?

 

The LMI credit with CBA is very important and I wouldn't refinance just for the rate.

ING dont tick a lot of boxes and their equity release policy is poor.

There are other lenders that have better cash out policies and servicing calculators than ING such as Resimac. They do 3.72% IO on owner occupied (4.32% on investment) and have unlimited cash out at 80%.

Overall policy of a lender is a big consideration - dont just focus on the rate.

 

Sounds like an equity release against the owner occupied property where the purpose is investment.

 

I read it as LMI was paid on the purchase of the owner occupied originally so when they say "2 years remaining" I don't see how given its original purpose was OO. The top up of LMI maybe but what are we talking?

I agree don't waste the credits (if they were significant).

 

clearly this post was before coffee. Hence IGA instead of ING.
We are trying to access equity (with 80% LVR) on PPOR with IO loan.

 

PPOR might actually become IP down the line, in that case LMI would be tax deductible. Should have clarified that in my original post.

 

Thanks Shahin. I don't know much about lender policies, hence have to rely on what broker advises. That's why I seek advise on this forum so I can get expert opinions.
I feel we should stay with CBA for now if they can renegotiate a little. Do you know how is CBA with releasing equity.

 

CBA is good with equity release but I'm not going to pliss in your pocket - ALL lenders are tightening up on equity releases big time. Its the next thing after they are done with IO loans.

This usually starts with the majors and filters its way down to the smaller guys.

I noticed some people saying equity releases are fine at 80% but to an extend is but this is changing rapidly whereby lenders need proof of funds. For now, the resimac policy of unlimited cash out is certainly a "niche" in the market. How long it will last is anyones guess.

I dont know the other broker but anyone recommending ING and equity releases rings alarm bells for me. My advice is to talk to some other Melbourne brokers here on the forum and get a second opinion. I strongly doubt they would be suggesting you should refinance to ING.

 

ING can be a pain - but I'm happy to report that the last three equity releases (for investment purposes) I've carried out were all approved without hassle.

Cheers

Jamie

 

Tax Tip 33: Deductibility of LMI https://propertychat.com.au/community/threads/tax-tip-33-deductibility-of-lmi.3425/
Tax Tip 34: Deductibility of LMI on loan increases https://propertychat.com.au/communi...-deductibility-of-lmi-on-loan-increases.3456/
Tax Tip 35: Is LMI Deductible in These Situations? https://propertychat.com.au/community/threads/tax-tip-35-is-lmi-deductible-in-these-situations.3493/

 

Why don't you strategize a bit.

You could for instance do the equity release with CBA - up to 80% and then immediately refinance to ING. You might even be able to get owner occupied rates on the equity release component too.

 

Apologies for this confusing post.
LMI was paid on PPOR when bought in 2014. Loan on this PPOR has mostly been IO with intention of making it a IP eventually.

 

Thanks Terry, my question is if we access equity with CBA-up to 80% and then refinance with another lender, the LMI that we paid to CBA in 2014 would it still be tax deductible if we make the PPOR an IP lets say end of 2017?

 

Thanks Terry, lot of information to read through. Helpful as always.

 

I found the answer in this thread here.
Tax Tip 34: Deductibility of LMI on loan increases
The answer would be NO, please correct me if I am wrong.

 

ING rate will go up to 3.94% as they are loading the IO from late June....still very good for IO though.


ING DIRECT will introduce a loading of 0.15% p.a. for variable rate Owner Occupied home loan applications with Interest Only repayments.The loading will apply during the Interest Only period for both new and existing customers effective 23rd June 2017.

 

I think i may have covered this in one of those tips.

LMI may be deductible to an extent if you rent the property out before refinancing.

 

I have 550k Owner Occupied loan with ING.
My broker told me that
1. ING will lend less compared to St George
2. It is better to refinance to St George and cashout 330k.

In your opinion, is it easier to
1. talk to ING and increase to 880k with 330k cash out
OR
2. refinance 550k to St George with 330k cash out

I was also told that I need to provide reason(s) for the 330k cash out.

Thanks in advance.