diff --git a/packages/compiler-cli/src/ngtsc/typecheck/src/type_check_block.ts b/packages/compiler-cli/src/ngtsc/typecheck/src/type_check_block.ts
index 69cee59c7db..044e3a9f2f6 100644
--- a/packages/compiler-cli/src/ngtsc/typecheck/src/type_check_block.ts
+++ b/packages/compiler-cli/src/ngtsc/typecheck/src/type_check_block.ts
@@ -701,16 +701,7 @@ class TcbDirectiveInputsOp extends TcbOp {
     const inputs = getBoundInputs(this.dir, this.node, this.tcb);
     for (const input of inputs) {
       // For bound inputs, the property is assigned the binding expression.
-      let expr = translateInput(input.attribute, this.tcb, this.scope);
-      if (!this.tcb.env.config.checkTypeOfInputBindings) {
-        // If checking the type of bindings is disabled, cast the resulting expression to 'any'
-        // before the assignment.
-        expr = tsCastToAny(expr);
-      } else if (!this.tcb.env.config.strictNullInputBindings) {
-        // If strict null checks are disabled, erase `null` and `undefined` from the type by
-        // wrapping the expression in a non-null assertion.
-        expr = ts.createNonNullExpression(expr);
-      }
+      const expr = widenBinding(translateInput(input.attribute, this.tcb, this.scope), this.tcb);
 
       let assignment: ts.Expression = wrapForDiagnostics(expr);
 
@@ -922,16 +913,7 @@ class TcbUnclaimedInputsOp extends TcbOp {
         continue;
       }
 
-      let expr = tcbExpression(binding.value, this.tcb, this.scope);
-      if (!this.tcb.env.config.checkTypeOfInputBindings) {
-        // If checking the type of bindings is disabled, cast the resulting expression to 'any'
-        // before the assignment.
-        expr = tsCastToAny(expr);
-      } else if (!this.tcb.env.config.strictNullInputBindings) {
-        // If strict null checks are disabled, erase `null` and `undefined` from the type by
-        // wrapping the expression in a non-null assertion.
-        expr = ts.createNonNullExpression(expr);
-      }
+      const expr = widenBinding(tcbExpression(binding.value, this.tcb, this.scope), this.tcb);
 
       if (this.tcb.env.config.checkTypeOfDomBindings && binding.type === BindingType.Property) {
         if (binding.name !== 'style' && binding.name !== 'class') {
@@ -1811,16 +1793,7 @@ function tcbCallTypeCtor(
 
     if (input.type === 'binding') {
       // For bound inputs, the property is assigned the binding expression.
-      let expr = input.expression;
-      if (!tcb.env.config.checkTypeOfInputBindings) {
-        // If checking the type of bindings is disabled, cast the resulting expression to 'any'
-        // before the assignment.
-        expr = tsCastToAny(expr);
-      } else if (!tcb.env.config.strictNullInputBindings) {
-        // If strict null checks are disabled, erase `null` and `undefined` from the type by
-        // wrapping the expression in a non-null assertion.
-        expr = ts.createNonNullExpression(expr);
-      }
+      const expr = widenBinding(input.expression, tcb);
 
       const assignment = ts.createPropertyAssignment(propertyName, wrapForDiagnostics(expr));
       addParseSpanInfo(assignment, input.sourceSpan);
@@ -1883,6 +1856,31 @@ function translateInput(
   }
 }
 
+/**
+ * Potentially widens the type of `expr` according to the type-checking configuration.
+ */
+function widenBinding(expr: ts.Expression, tcb: Context): ts.Expression {
+  if (!tcb.env.config.checkTypeOfInputBindings) {
+    // If checking the type of bindings is disabled, cast the resulting expression to 'any'
+    // before the assignment.
+    return tsCastToAny(expr);
+  } else if (!tcb.env.config.strictNullInputBindings) {
+    if (ts.isObjectLiteralExpression(expr) || ts.isArrayLiteralExpression(expr)) {
+      // Object literals and array literals should not be wrapped in non-null assertions as that
+      // would cause literals to be prematurely widened, resulting in type errors when assigning
+      // into a literal type.
+      return expr;
+    } else {
+      // If strict null checks are disabled, erase `null` and `undefined` from the type by
+      // wrapping the expression in a non-null assertion.
+      return ts.createNonNullExpression(expr);
+    }
+  } else {
+    // No widening is requested, use the expression as is.
+    return expr;
+  }
+}
+
 /**
  * An input binding that corresponds with a field of a directive.
  */
diff --git a/packages/compiler-cli/src/ngtsc/typecheck/test/diagnostics_spec.ts b/packages/compiler-cli/src/ngtsc/typecheck/test/diagnostics_spec.ts
index fc061f4dd99..bc4a55a2ea5 100644
--- a/packages/compiler-cli/src/ngtsc/typecheck/test/diagnostics_spec.ts
+++ b/packages/compiler-cli/src/ngtsc/typecheck/test/diagnostics_spec.ts
@@ -277,6 +277,46 @@ runInEachFileSystem(() => {
       ]);
     });
 
+    it('should retain literal types in object literals together if strictNullInputBindings is disabled',
+       () => {
+         const messages = diagnose(
+             `<div dir [ngModelOptions]="{updateOn: 'change'}"></div>`, `
+              class Dir {
+                ngModelOptions: { updateOn: 'change'|'blur' };
+              }
+
+              class TestComponent {}`,
+             [{
+               type: 'directive',
+               name: 'Dir',
+               selector: '[dir]',
+               inputs: {'ngModelOptions': 'ngModelOptions'},
+             }],
+             [], {strictNullInputBindings: false});
+
+         expect(messages).toEqual([]);
+       });
+
+    it('should retain literal types in array literals together if strictNullInputBindings is disabled',
+       () => {
+         const messages = diagnose(
+             `<div dir [options]="['literal']"></div>`, `
+                class Dir {
+                  options!: Array<'literal'>;
+                }
+
+                class TestComponent {}`,
+             [{
+               type: 'directive',
+               name: 'Dir',
+               selector: '[dir]',
+               inputs: {'options': 'options'},
+             }],
+             [], {strictNullInputBindings: false});
+
+         expect(messages).toEqual([]);
+       });
+
     it('does not produce diagnostics for user code', () => {
       const messages = diagnose(`{{ person.name }}`, `
       class TestComponent {
diff --git a/packages/compiler-cli/src/ngtsc/typecheck/testing/index.ts b/packages/compiler-cli/src/ngtsc/typecheck/testing/index.ts
index 76fa391fdfc..3e57890a933 100644
--- a/packages/compiler-cli/src/ngtsc/typecheck/testing/index.ts
+++ b/packages/compiler-cli/src/ngtsc/typecheck/testing/index.ts
@@ -46,6 +46,7 @@ export function typescriptLibDts(): TestFile {
         [index: number]: T;
         length: number;
       }
+      declare interface Iterable<T> {}
       declare interface String {
         length: number;
       }
@@ -63,7 +64,7 @@ export function typescriptLibDts(): TestFile {
       }
       declare interface HTMLElement {
         addEventListener<K extends keyof HTMLElementEventMap>(type: K, listener: (this: HTMLElement, ev: HTMLElementEventMap[K]) => any): void;
-        addEventListener(type: string, listener: (evt: Event): void;): void;
+        addEventListener(type: string, listener: (evt: Event) => void): void;
       }
       declare interface HTMLDivElement extends HTMLElement {}
       declare interface HTMLImageElement extends HTMLElement {
@@ -94,8 +95,8 @@ export function angularCoreDts(): TestFile {
     name: absoluteFrom('/node_modules/@angular/core/index.d.ts'),
     contents: `
     export declare class TemplateRef<C> {
-      abstract readonly elementRef: unknown;
-      abstract createEmbeddedView(context: C): unknown;
+      readonly elementRef: unknown;
+      createEmbeddedView(context: C): unknown;
     }
 
     export declare class EventEmitter<T> {