ING growing as a mortgage lender

Australia’s fifth largest mortgage lender, ING Direct, plans to capitalise on its “strong competency” in direct distribution of savings products to develop a leading role in direct sales (using the internet and telephone) of mortgages.

Last week ING Direct released its results for 2009, reporting almost four per cent growth in its mortgage portfolio, which is now worth $36 billion. That puts it behind Commonwealth Bank (with BankWest), Westpac (with St George), National Australia Bank and ANZ in the home loan market pecking order.

With no branch network, ING Direct sells 75 per cent of its home loans through brokers, 20 per cent through white label arrangements and five per cent direct. The bank’s executive director in charge of mortgages, Lisa Claes, said the direct channel had the potential to contribute 15 or 20 per cent of new business flows in the next few years.

Source: Banking Day