A challenger bank will hit property investors with a 15 basis point variable rate hike in the new year.
AMP Bank has announced an increase to variable interest rates on residential investment loans of 15 basis points, effective 6 January 2017 for new customers and 9 January 2017 for existing customers.
The AMP Professional Pack Home Loan variable interest rate for investor loans $250,000 and above will increase from 3.99 per cent to 4.14 per cent per annum.
There are no changes to variable interest rates for owner-occupied loans.
AMP Bank managing director Sally Bruce said the group remains focused on supporting its customers with competitive interest rates.
“Changes to our home loan rates take into account increasing wholesale funding costs and the need to maintain a balanced portfolio in line with regulatory guidelines,” she said.
Back in August, AMP highlighted that growth in investment property lending, including SMSF property loans, had been improving since the bank recommenced investment lending in November 2015.