The AFR is reporting that ING has said new investor borrowers will need to find a 20% deposit, a hurdle which had previously applied only to loans in Sydney. They will also end discounts rates for new investor borrowers and tighten serviceability assessments.
This is further evidence that smaller banks are reacting to the APRA 10% threshold. APRA data shows ING has about $9bn of investment loans but is not growing above the 10% limit. Their move looks like preemptive action to avoid a flood of applications as investors seek loans from smaller players in response to the majors throttling back, or a reduction in focus on mortgages in Australia. Macquarie purchased a mortgage portfolio of $1.5bn from ING in September 2014.
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