ING Direct Australia, one of the country's largest retail bank, says it will offer $1000 cash to any customer who switches their mortgage to ING Direct and opens an Orange Everyday transaction account before June next year.

Customers can go to ingdirect.com.au/switch to register for the offer by 30th November 2010. The $1000 is paid at time of settlement.

CEO, Don Koch, said ING Direct is making the offer to drive more competition into the Australian banking market. "We want people to vote with their feet and switch banks if they are unhappy with their existing banking relationship."

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

"Switching banks should be easier and this $1000 is an incentive for people to start the process."

ING Direct is Australia's 5th largest retail bank in savings and home loans and has more than 1.4 million customers.

"The ING Direct proposition has always been long term good value combined with simple products and excellent service," Mr Koch said.

Australian banks currently charge exit fees of between $700 and $900 if borrowers want to switch out of a loan within the first four years.

Non-bank lenders charge considerably more, requiring $4100 to $7300 from borrowers wishing to switch a loan within the first three years.