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ING DIRECT Orange Advantage Loan

Features

ING DIRECT’S Orange Advantage Loan is offered as both a fixed rate home loan and a variable rate home loan – and also as a split rate home loan. The pros and cons of these loans are slightly different.

The fixed or split Orange Advantage Loan offers a discount off the advertised fixed interest rate. The loan application fee can also be waived – but only if you are an owner occupier. Investors should be aware that they will pay higher interest rates than their owner occupier counterparts, however this ING loan offers competitive rates so you may still find you are getting a good deal.

If you choose to fix your loan, be aware that extra repayments of more than $10,000 in any calendar year may see you hit with breakout fees and other charges.

The variable rate Orange Advantage Loan does not charge any extra for additional repayments, nor are there limits to the amount of additional funds you can pay into your loan at any time.

If you combine your variable loan with an Orange Everyday Bank Account, you may also receive a 1 per cent cashback on your monthly repayment (to a maximum of $3,000), providing your savings account receives deposits of $1,000 or more per month.

Your Orange Everyday Bank Account can be set up as a 100 per cent offset facility, making it easier to pay your home loan off faster. You can also access your savings in this offset account from any ATM network in the country for free.

Who is the ING DIRECT Orange Advantage Loan good for?

This home loan is good for owner occupiers, first home buyers and those who are looking to refinance. It is best suited to borrowers with a home loan deposit, or equity amount, of more than 10 per cent. The loan is available to investors, but at a higher interest rate.

The Orange Advantage Loan is also suitable for borrowers who want to take advantage of an offset facility to reduce the interest paid over the life of their loan.

Review - What RateCity says

The combination of a variable rate Orange Advantage Loan and the Orange Everyday Bank Account gives you access to interest rate discounts and some fee waivers. The 100 per cent offset option is attractive and can help you pay your home loan down faster, saving you thousands over the long term. However, there is a still a low to moderate annual fee to pay every year and additional fees for fixed rate borrowers.

While there are some discounts on interest rates applicable in different situations, it is worth looking into your specific circumstances to ensure the advertised discounts will apply to you and whether the annual fee costs you less than any savings you will make.

ING DIRECT Orange Advantage Loan Options

ING’s Orange Advantage loan provides a range of different options, depending on the amount you want to borrow and the size of your deposit.

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Advertised rate
Comparison rate*
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Fixed Rates from

3.99%

Advertised rate

4.51%

Comparison rate

Variable Rates from

3.64%

Advertised rate

3.96%

Comparison rate
Pros
  • Cashback on your monthly home loan repayment.
  • Application fee waived to split some or all of loan.
  • Full offset facility for variable home loan option.
Cons
  • Incurs a moderate annual fee.
  • Necessitates you taking out an ING DIRECT Everyday savings account.
  • Break fees will apply for fixed loans payed off before full term.
Eligibility

Must borrow a total of $150,000 or more.

Must have at least a 10 per cent deposit, or equivalent value in available equity.

Must meet ING DIRECT’S serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $299
  • Discharge fees: $250
  • Ongoing fees: $299 annually

While there are no application fees for the Orange Advantage variable home loan product, a moderate annual fee does apply. There are also set up fees and charges payable at the beginning of the loan.

Additional fees also apply for fixing some, or all, of your loan including a ‘ratelock’ fee. The fixed rate home loan does also incur an application fee which can be waived under certain circumstances.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About ING

ING DIRECT is a mostly online lender. They provide accessible online self-service facilities and 24/7 banking options via their website and phone support services. They do not have a branch network outside of their head office which is located in Sydney.

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