ING Direct the biggest of the small
Online bank ING Direct is Australia’s biggest second-tier lender for owner-occupier mortgages and the Bank of Queensland has the biggest investor mortgage book, according to September figures released by the prudential authority APRA.
The second tier comprises banks that fall outside the big four banks and their subsidiaries, namely Commonwealth Bank (and its subsidiary Bankwest), Westpac (including subsidiaries Bank of Melbourne and St George), ANZ and NAB.
The latest figures show that ING Direct, the Australian subsidiary of the Dutch banking giant ING, has an owner-occupier mortgage book of $28 billion and an investor loan book of over $9 billion.
Bank of Queensland has an investor mortgage book of $9.6 billion and an owner-occupier mortgage book valued at $11.6 billion.
Both banks have passed on the full November 2 RBA rate cut to their borrowers, with ING Direct’s Mortgage Simplifier product reducing to a rate of 6.87%, effective November 7, while the Bank of Queensland will reduce its standard variable rate home loan to 7.61% on November 11.
Another small lender, Rabobank, which specialises in rural loans, will reduce the variable base rate on its rural loans by 0.25% per annum.
Second-tier lenders (ranked by size of owner occupier mortgage book)
| Owner occupier mortgage book | Investor mortgage book |
ING Direct | $28 billion | $9.4 billion |
Suncorp | $21 billion | $8.2 billion |
Bendigo and Adelaide Bank | $13 billion | $8.3 billion |
Bank of Queensland | $11.6 billion | $9.6 billion |
Citibank | $4.7 billion | $2.4 billion |
AMP Bank | $4.6 billion | $1.7 billion |
ME Bank | $4.5 billion | $1.1 billion |
HSBC | $3.4 billion | $3.8 billion |
MECU Limited | $1.5 billion | $0.3 billion |
Macquarie Bank | $1.4 billion | $0.7 billion |
Bank of China | $0.3 billion | $129 million |
Bank of Cyprus | $0.2 billion | $ 35 million |
Rabobank | $0.2 billion | $16 million |
Beirut Hellenic Bank | $120 million | $0.24 billion |
Investec | $25 million | - |
Source: APRA