Non-major bank set to further tighten SMSF lending policy
A non-major bank has revealed it will make pricing and policy changes to its SMSF property loans, including the removal of some current options for new clients.
AMP Bank will no longer offer interest-only payments as a payment option on new SMSF applications received from 7 August 2018.
Any loan that has settled prior to 6 August 2018 will still have interest-only payments available as an option.
Effective 3 August, AMP Bank will also be making pricing changes for new SMSF loans, increasing the variable interest rate for its AMP SuperEdge loan product by 0.25 per cent to 6.44 per cent.
It will also be increasing fixed rates for new SMSF loans by 0.80 per cent.
An AMP spokesperson clarified that pricing and policy changes apply to new SMSF loans only.
“These adjustments are in response to recent market changes as well as the Bank’s focus on managing its portfolio responsibly while balancing this with the needs of our customers, shareholders and regulators,” said the spokesperson.
This latest update follows a spate of changes to SMSF lending policy across banks recently, with Westpac announcing it would pull out of SMSF lending completely across all of its brands, including St.George, Bank of Melbourne and BankSA.
Macquarie has also made pricing changes to its SMSF loans, announcing a 0.10 per cent increase in variable rates across its investment and SMSF loans.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.