Second-tier bank backs off on SMSF lending
One second-tier bank has responded to regulator guidelines to limit growth in investment property lending by upping rates and restricting further lending, including to SMSFs.
AMP Bank will increase variable rates on all existing investment property loans by 0.47 per cent per annum from 7 September 2015, according to a statement released yesterday.
All investor property loan applications that have been approved will be subject to the 0.47 per cent increase on settlement, AMP Bank stated.
AMP Bank will also not be accepting new or assessing existing investor property lending applications from 29 July 2015 onwards.
This is expected to last until later in 2015, depending on market conditions.
“Australia’s property market is experiencing high levels of investor property lending growth and we are supportive of the regulator’s intention to slow this growth to appropriate levels,” said Michael Lawrence, managing director at AMP Bank.
“We appreciate the position this puts our customers in and will be working with our distribution network to actively communicate with them.”
The move follows a broader crackdown on investor lending, with several SMSF lenders tightening their conditions.
As reported in mid-June, banks including NAB, ANZ and Bankwest, have made changes to their lending practices to slow down rates of investment and interest-only lending.
More specifically, banks including NAB and ANZ, have ruled out providing property loans for SMSFs.