AMP Bank announces investor lending changes

AMP Bank announces investor lending changes

AMP Bank AMP Bank
James Mitchell Comments 1
Shares 32

The challenger bank has today announced changes to investor lending to manage its portfolio and align with regulatory requirements.

AMP Bank’s variable interest rates for new and existing investment property loans will increase by 35 basis points.

For all new investor property loans, the maximum loan-to-value ratio (LVR) is reducing to 50 per cent. This change applies to all new loans with an investment property as security and includes loans to SMSFs.

The changes to interest rates are effective 23 June 2017 for new customers and from 26 June 2017 for existing customers. LVR change is from 21 June for new investment property loans and 1 July for SMSF investor loans.

AMP Bank group executive Sally Bruce said the measures are needed to ensure AMP operates within its regulatory obligations.

“We’re committed to managing our portfolio responsibly while balancing this with the interests of our customers,” she said.

“We are managing our loan book in a very active market and these changes follow recent shifts in competitor activity. We will continue to take the necessary steps for sound management of our regulatory requirements.”

AMP Bank announces investor lending changes
TheAdviser logo
Shares 32

Promoted Stories

more from the adviser
New learning platform for brokers launched

A new interactive learning platform has been launched by the YBR ...

‘No formula’ for mortgage repricing, says NAB CEO

The major bank boss has confirmed that quantifying interest rate ...

Mortgage Choice sees FHB flows jump to 15%

Historically low interest rates combined with additional first ho...