ING imposes tougher lending restrictions for ‘high risk’ borrowers

ING will be tightening its lending criteria for Aussies with high risk jobs looking to take out a home loan

Any new applications submitted by casual, contractor or self-employed borrowers after April 15 will be subject to harsher serviceability restrictions, the lender said this week. 

These changes will spare some industries most impacted by COVID-19, but others will need to meet much firmer rules.

But while it might be a sticky time for certain borrowers looking to purchase their first home, Mozo’s Property Expert, Steve Jovcevski says those who qualify shouldn't rule it out. 

“If you have a stable income and your job is secure, it is absolutely a great time to buy for the first time in years. If prices drop in the future and you come across someone who’s really desperate to sell, you could snag a serious bargain,” he said. 

ING’s changes for self-employed borrowers include:

- Income from applicants in industries most impacted by the COVID-19 outbreak, such as hospitality, tourism and retail will not be included in serviceability assessments 

- Cash out is not available

- Business activity statements for periods ending in March 31 2020 will need to “demonstrate alignment of current revenue to the most recent financial years.” 

The changes for contractor and casual borrowers are: 

Owner-occupier home loan applicants that only have casual or contractor income will not be considered, however it may be considered a secondary income if the application also contains a salaried employee  

- Casual or contractor income will not be assessed for investor mortgage applications. 

RELATED: Risky business or perfect timing, is now the right time to purchase a property?

It’s hoped the credit policy changes will help the bank lend more responsibly. 

“We believe these adjustments are appropriate, given the current circumstances and acknowledge the resultant disruption to the incomes of so many Australians,” ING told brokers. 

“These measures have been taken to ensure ING doesn’t place borrowers into positions likely to result in loan default due to circumstances beyond their control.”

Other restrictions the bank has put in place are around rental income verification. Applicants will now be required to provide proof of rental payment from the previous 30 days. 

Finally, any bonus or overtime income and commissions will now be assessed at 50%, however borrowers in essential service industries are excused from this measure. 

Other lenders who have made similar adjustments to their lending criteria in the last few weeks include Gateway Bank, MyState Bank, Heritage Bank and ME

While in early April, insurer QBE announced it would suspend offering Lender Mortgage Insurance (LMI) for borrowers financially affected by COVID-19. 

RELATED: NSW Government commits $440 million to rental relief during COVID-19

If you are in a financially secure position and are ready to buy your first home, get started by heading over to our home loan comparison tool or by checking out some current offers below. 


Compare home loans - last updated 3 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Home Variable Rate

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.