Will ING deal inspire consumers to compare home loans?

Australian consumers could be encouraged to compare home loans following the launch of a new switching incentive by one of the nation's smaller banks.

ING Direct is looking to take advantage of the recent controversy surrounding larger financial institutions by offering a $1,000 incentive to customers who switch their mortgage, it has been reported.

Under the terms of the deal, anyone bringing their mortgage across to the foreign-owned bank will receive $1,000, provided the switch is completed before June next year.

Don Koch, ING Direct's chief executive commented: "Switching banks should be easier and this $1,000 is an incentive for people to start the process.

"If customers become more mobile, banks will be forced to offer better value and better service."

The deal could inspire a number of consumers across the country to compare home loan rates to see if switching could help to save them money in the long run.

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