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While only time will tell whether or not the government’s exit fee ban will hurt smaller lenders, the decision will ultimately prompt Australians to explore their home loan options, according to ING DIRECT.
Speaking to Smart Property Investment, ING DIRECT’s head of mortgage products Ray Esho said the bank supported any initiatives that result in home loan customers looking for a better deal.
“We’ll have to wait and see what effect these changes will have on the home loan landscape, but we encourage anything that will push customers to look for a better deal across a range of lenders, including second tier banks such as ING DIRECT,” Mr Esho said.
ING DIRECT abolished its deferred establishment fees to both new and existing customers in November 2010, well before the recent government focus.
“Providing value for money to Australians often means our products need to evolve and this is but one example,” Mr Esho said.
When asked why ING DIRECT decided to abolish their DEF’s last year before everyone else, Mr Esho said the bank was always determined to be on the front foot with both product policy and pricing.
“As with many of our recent initiatives, ING DIRECT is taking the lead in driving competition. We’re keen to stay on the front foot in doing so and ultimately improving the competitive landscape.”