One of the major SMSF loan providers will change the maximum loan to value ratio for new SMSF loans to 50 per cent from 1 July.
AMP is changing the maximum loan to value ratio (LVR) for all new investor property loans, as reported by SMSF Adviser’s sister publication Mortgage Business.
The LVR percentage will be changed to 50 per cent and apply to all new loans with an investment property as a security and includes loans to SMSFs. The change will apply from 1 July for SMSF loans, which currently have an LVR of 70 per cent.
AMP Bank also announced that variable interest rates for new and existing investment property loans will increase by 35 basis points.
The change in interest rates will apply from 23 June 2017 for new customers and 26 June 2017 for existing customers. AMP confirmed that the variable rate change also includes SMSF 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.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all