ING releases mortgage shortcut for Aussies keen to pay off their home loan faster
ING has just unveiled an Everyday Round Up feature designed to help home loan borrowers save on their mortgage, as research reveals that more than half of Aussie borrowers fear they'll never pay off their home loan.
The new feature works by rounding up purchases made on an ING Orange Everyday Account to the nearest $1 or $5, and depositing the money straight into an ING Mortgage Simplifier or Orange Advantage home loan.
“Everyday Round Up for Home Loans is about helping our customers to stay a step ahead by enabling them to use their small change to pay off their biggest purchase - their home,” said ING Head of Retail Banking, Melanie Evans.
With ING research revealing 40% of Aussies are worried they’ll be carrying the mortgage into retirement, it’s no surprise majority of Aussies feel burdened by their home loan.
“In the last few months we’ve seen everyone from the big four to smaller lenders hike up their home loan rates, so it comes as no shock that Australians are feeling some mortgage stress,” said Mozo Data Manager, Peter Marshall.
The ING research has also revealed that Aussies are so eager to stay on top of their repayments that 82% are paying down more than what’s required most years. That’s where the new feature comes in.
With Everyday Round Up, ING estimates that customers who ‘round up’ $50 a month could shave 19 months off their mortgage, or save $14,000 on a 30 year, $350,000 (LVR <80%) ING Mortgage Simplifier home loan.
“The benefits of paying off your loan early are obvious in that you’ll have to pay less to the banks in interest,” said Marshall.
“Anything that helps you pay off your debt sooner is worth considering, and it’s amazing how those small accounts can add up.”
Evans hinted that the success of ING’s Everyday Round Up for Savings Maximiser lead to the introduction of the Home Loans feature.
“We launched Everyday Roundup a year ago to help Aussies round up their loose change into a savings account where it would earn interest,” she said.
“In less than a year we’ve helped over 160,000 customers collectively save $32 million.”
So, if you’re thinking of taking out a home loan with ING, or making the switch to one, check out their range of home loans on their page.
Or, to compare ING home loans amongst over 500 others available in Australia, head over to our home loan comparison tool.