AMP has announced that from 20 October 2018, its SMSF loan product SuperEdge Loan will be removed from sale.
In a public update, AMP stated that all applications for AMP SuperEdge Loans lodged prior to 20 October 2018 will be assessed and reviewed under current policies.
From 10 November 2018, existing AMP SuperEdge Loans will not be permitted to switch to interest-only repayments, internally refinance or extend their loan terms.
Existing AMP SuperEdge loans will continue to be able to switch to principal and interest ahead of their scheduled switch date, switch to a fixed rate and reduce their loan balance, AMP stated.
This follows recent announcements from Westpac and CBA that they too would be exiting the SMSF loans space.
In early August AMP tightened its lending policies for SMSF property loans, removing interest only payment options for new loans.
Steve. AMP Bank is probably unaware of the existence of The AMP SMSF one stop shop – SuperConcepts or the amount of business coming from this firm is immaterial.
LRBAs are a relatively simple structure but bring with them complications around advice. Something that in the era of Royal Commisions & extended regulatory oversight that AMP could do without.
It would not surprise me if AMP divested itself of SuperConcepts. Since arpund April they no longer have any directors on the board of this company.
Agree George other than the fact that AMP is the largest SMSF “one-stop shop” in the land so is a little strange for the technical team to talk about the benefits of borrowing strategy’s but not have the business support it with the solution. Easy to talk but have to back it up with service, solutions and delivery.
It is indeed a strange move by AMP to cease lending to SMSFs. Continuation of lending would provide them with a point of differentation from the other major lenders.
The AMP invesrment in their one stop shop now exceeds $100m. Perhaps AMP has finally conceded that this is lost & its time to shift strategy.
I can understand the rationale for banks to exit the space given capital adequacy ratios and more profitable home owner loans, even AMP too, But I cannot understand why we don’t have peer to peer lending in this space with SMSFs seeking long term interest to fund pensions lending to younger SMSF owners seeking property with good contributions history and security. Anyone interested let me know
Agree totally Grant
Oh, this is so good and it gave me such a good laugh. Would anyone borrow from, or have any dealings, with AMP?
Some one must or they wouldn’t have a banking business. They are a reasonably large company George, even if you don’t like them.